Former DOJ Attorney: SEC v. Coinbase Could Redefine US Crypto Regulation
The U.S. Securities and Exchange Commission has filed a lawsuit against Coinbase, accusing the exchange of facilitating unregistered securities trading. The outcome of this case may have far-reaching effects on the regulatory framework governing cryptocurrencies in the U.S.
In an interview with Cryptonews.com, former Department of Justice Attorney Seth Goertz discussed the potential implications of the SEC v. Coinbase case. He emphasized that the case could redefine crypto regulations in the U.S., impacting not only Coinbase but also other exchanges and the broader market.
The SEC claimed that several cryptos listed on Coinbase qualify as securities and should have been registered under U.S. securities laws. This lawsuit represents an attempt by the Commission to assert regulatory control over the market, which has largely operated in a legal gray area.
In recent developments, Coinbase’s attempt to dismiss the case was denied, allowing the lawsuit to proceed. The court’s decision indicated that there could be enough merit to the SEC’s claims to warrant further examination.
Goertz highlighted the legal arguments from both sides. The SEC argued that the Howey Test, a legal standard used to determine whether an asset qualifies as a security, applies to particular cryptos traded on Coinbase.
Coinbase, on the other hand, maintained that the assets in question do not meet the criteria outlined in the Howey Test and therefore should not be subject to SEC regulation.
As the case progresses, the implications for the broader digital asset industry are significant. A ruling in favor of the SEC could lead to increased regulatory scrutiny and compliance requirements for crypto exchanges, potentially reshaping the market dynamics.
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