- Coinbase filed the request with the US Court docket of Appeals for the Third Circuit on Monday.
- As Paul Grewal identified, the transient highlights inconsistencies within the SEC’s arguments.
- The change is asking a court docket to power the SEC to undertake a brand new set of complete crypto guidelines
Grewal identified inconsistencies within the SEC’s contradictory arguments. The lawyer directed his readers to undergo the transient notes within the put up which present “how damaged the Fee’s strategy was”.
In accordance with Grewal’s put up, the transient targeted on three key questions concerning the safety standing of digital belongings, the SEC’s authority over cryptocurrencies, and the readability of present regulation. He identified that the SEC has introduced conflicting arguments over time on these related points.
Notably, in 2018 the SEC said that digital belongings should not securities. Nonetheless, in 2021 they claimed that the digital asset embodies and constitutes an “funding contract”. In 2024, they made one other contradictory assertion: “A digital asset is simply pc code. Simply 5 days later, they repeated their earlier assertion that the digital asset was an funding contract.
Though the company acknowledged that there was no “market regulator for cryptocurrencies” in 2021, it rephrased its phrases in 2022, stating, “Congress gave us a broad framework… to manage exchanges.” In relation to the readability of the regulation, the SEC reportedly takes conflicting positions. Whereas they admitted in 2020 that there was no “certainty” that digital belongings had been securities, in 2023 they argued: “Now we have a transparent regulatory framework constructed over 90 years.
As well as, Coinbase’s transient requested that the court docket compel the SEC to undertake an applicable and complete regulatory framework and reiterate its earlier requests. The change accused regulators of performing arbitrary and capricious whereas refusing to create new guidelines for cryptocurrencies.
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