The Securities and Exchange Commission (SEC) is at war against the crypto community. This is very clear with the ongoing interactions between Coinbase and the regulatory body. What began with issuing a Wells Notice to the exchange has led to a huge debacle. It is expected that the matter will resolve only in the court now.
Both Coinbase and the SEC have issued legal notices against each other. On April 24th, Coinbase filed a legal notice against the SEC in the court of Philadelphia. It was filed because the regulatory body needed to provide the exchange with timely responses. According to the lawsuit, “the SEC refuses to address Coinbase’s rulemaking petition”.
Since then, many people have predicted that legal action will be taken. If this occurs, a crypto-friendly legal expert, @@MetaLawMan, believes the exchange platform will prevail over the market regulator. According to the analyst, the SEC’s case has a ‘fatal flaw’. And this flaw is SEC’s Chair, Gary Gensler’s own doing.
The analyst brought out a video of Gensler pointing out how the regulatory body has no right from Congress to regulate crypto exchanges. This video was posted by the SEC itself on May 6, 2021. On doing some background search, it became sure that Gensler’s statement was true and that the SEC cannot do anything to regulate crypto exchanges.
He also stated that whatever agency would be granted jurisdiction to regulate crypto exchanges is a major question that only Congress can solve. The SEC cannot simply wish for its own legal power. Secondly, the analyst also pointed out how the SEC was aware that they cannot regulate the exchange since they posted the video. If the regulatory body now acted against the exchange, it would look like acting against its own statement.
This major blunder can play an important role in the defence of Coinbase. There are even chances that the staff of the SEC do not agree with Gensler as well. Moreover, this shall play poorly in the court and shall have a damaging reputation for Gensler as well as the whole regulatory body.
This is not the first time people have stood up for the crypto industry. Other firms and even lawmakers are supporting the crypto industry. The SEC has already come in front of Congress to defend its actions against the industry. Firms are planning on relocating from the USA. This is leading to speculations that crypto is dead in America.
