SEC Faces Backlash as Coinbase Secures Legal Victory: What It Means for Crypto

The post SEC Faces Backlash as Coinbase Secures Legal Victory: What It Means for Crypto appeared first on Coinpedia Fintech News

Earlier this week, a three-judge bench in the Third Circuit ruled in favor of coinbase

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WalletCentralised Exchange

Global Inc. (NASDAQ: COIN) in the case filed by the U.S. SEC. The U.S. SEC accused Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency.

However, Coinbase has vehemently denied the accusations and alleged that the agency under Chair gary gensler

gary gensler

Gary Gensler is a pioneer and the current chair of the U.S. Securities and Exchange Commission. He has extensive experience that spans Wall Street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. Gary S. Gensler was on born October 18, 1957, in Baltimore, Maryland.He graduated from Pikesville High School in 1975, where he was later given a Distinguished Alumnus award. He also earned a degree in economics.Gensler served in the United States Department of the Treasury as Assistant Secretary for Financial Markets from 1997 to 1999, then as Undersecretary for Domestic Finance from 1999 to 2001He has expressed his desire to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages.

Chairman

has refused to provide clear crypto regulatory guidance. Moreover, the U.S. SEC has been using archaic rules on nascent crypto and blockchain technology, thus crippling the U.S. web3 industry.

Binance Taps On Coinbase’s Victory 

The U.S. SEC accused Binance Holdings of the same offense, in that the cryptocurrency has been operating as a securities exchange, broker, and clearing agency without the necessary approval. With the recent ruling of the Coinbase vs SEC case, which ordered the agency to offer a complete explanation of the cryptocurrency regulations under the federal securities law, Binance has now filed a notice of supplemental authority.

Binance used the recent Coinbase vs SEC ruling as Exhibit A.

Previously, Binance had requested the court to dismiss the SEC’s case due to a lack of satisfactory evidence of digital assets violating the Howey test. Furthermore, the U.S. Congress has yet to issue clear crypto guidelines for the SEC to enforce.

Silver Lining

With the Biden administration having less than a week in office, the cryptocurrency industry is already rejoicing in the upcoming Trump administration. The Trump administration has appointed David Sacks as the AI and crypto Czar and Paul Atkins as the Chair of the US SEC. 

With the promise of several executive orders on the first day including creating a strategic Bitcoin reserve and ending debanking, experts believe most of the crypto cases will end under the Trump administration.

“The entire market is relieved. We have a seismic shift in the approach and tone of the government and regulatory agencies,” Frank Chaparro, an early Bitcoin adopter noted.