Coinbase official says SEC lawsuit ‘undermines US competitiveness’

Coinbase’s chief legal officer Paul Grewal said that the SEC‘s approaches to regulation undermine the United States’ competitiveness. The Block reports this.

“The SEC’s reliance on enforcement alone, in the absence of clear rules for the digital asset industry, undermines the United States’ economic competitiveness and companies like Coinbase that have demonstrated a commitment to compliance,” the executive said.

He also stressed that the exchange plans to continue operating as usual.

“The solution is legislation that enables the transparent development and application of fair rules, rather than litigation,” added Grewal.

Coinbase CEO Brian Armstrong wrote:

“Instead of issuing a codified set of clear rules, the SEC has undertaken enforcement actions that harm America. So if we need to go to court to obtain clarity, so be it,”

According to him, the suit largely focuses on whether the exchange listed securities. Armstrong stressed that the company is confident in its approach.

Earlier ForkLog reported on the SEC’s lawsuit against Coinbase, filed a day after the start of proceedings with Binance.

The regulator contends that the platform violated securities laws. In the regulator’s view, a number of tokens on the exchange fall under this definition: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.

The SEC alleged that Coinbase illegally combines three functions — as broker, exchange and clearing agency, which are typically separated in traditional markets. The regulator’s Coinbase Earn staking program was also targeted.