In the ongoing battle between Coinbase and the US Securities and Exchange Commission (SEC) for clarity in the cryptocurrency market, major industry players are throwing their weight behind the crypto exchange.
Paradigm, the Crypto Council for Innovation, and the US Chamber of Commerce are among the prominent voices supporting Coinbase’s appeal to the SEC to establish specific regulations for the crypto industry.
In a recent court filing, Paradigm emphasised the SEC’s failure to provide clear rules and guidance for cryptocurrencies and related platforms, despite its active enforcement actions in the space. This lack of clarity, according to Paradigm, creates uncertainty for entrepreneurs and hampers judicial review.
The Crypto Council for Innovation echoes these sentiments, arguing that the SEC’s current approach fosters ambiguity and inhibits industry progress. They emphasise that the existing regulatory framework designed for traditional securities doesn’t adequately address the unique characteristics of crypto assets, which operate within decentralised networks and communities.
Coinbase, in its petition to the SEC, emphasised the need for clear guidelines on when crypto assets should be classified as securities. The exchange, valued at over $2 trillion, stressed the importance of regulatory oversight and expressed eagerness to comply with a well-defined framework.
Paradigm concluded its arguments by advocating for a shift away from the SEC’s regulation-by-enforcement approach, asserting that punitive measures for compliance attempts hinder industry stability and growth.
Ultimately, the crypto industry, represented by Paradigm, the Crypto Council for Innovation, and other stakeholders, is urging the SEC to initiate rulemaking for the sector. This demand underscores the industry’s frustration with the SEC’s reluctance to provide comprehensive regulations, which is perceived as a barrier to growth and development.
Coinbase’s stock, traded under the COIN ticker, has experienced a 4% decline in the last 24 hours, mirroring the price movement of Bitcoin (BTC), which dropped by 5% to $64,200 at the time of writing.