Former CFTC chairman says SEC acted deliberately against Coinbase

SEC acted deliberately, bringing charges against Coinbase a few hours before Coinbase’s chief legal officer Paul Grewal’s testimony before Congress. stated former chairman CFTC Christopher Giancarlo.

He noted that, given his experience leading the federal agency, the move seemed premeditated.

During the hearings, Grewal said the SEC’s suit was \”disappointing, but not surprising.\” He was due to testify on questions of digital-asset regulation in the United States.

“I think there is a very good chance that these bills will be passed by the House of Representatives this year,” added the former official.

Giancarlo led the CFTC from 2017 to 2019. Under his leadership the regulator approved Bitcoin futures trading. After leaving office he headed the nonprofit Digital Dollar Project, which promotes the idea of issuing a national digital currency, and invested in the cryptocurrency hedge fund BlockTower Capital.

In 2022 Giancarlo joined the advisory board of CoinFund, an investment company focused on the crypto industry.

Earlier, Coinbase declined to suspend services or make changes to listings due to SEC claims. CEO Brian Armstrong also rejected concerns about the platform’s financial resilience in the event of mass withdrawals by investors.

Grewal described the regulator’s approach to crypto-industry regulation as \”undermining US competitiveness\”.

On June 15, Coinbase’s Chief Legal Officer reacted to the SEC’s proposal to expand the definition of an exchange to DEX. The official said that the agency’s powers do not include the authority to ban [decentralised platforms] absent a clear congressional authorization.

Subsequently Coinbase accused the SEC of ignoring a court order to respond to a petition in which the company sought clarification on the regulation of the crypto industry.