Coinbase’s modification of its strategy in the litigation against the Securities and Exchange Commission (SEC) and Gary Gensler.
This may have caused the exchange to slightly retreat, as the political climate in the United States appears to have become more favorable for the crypto sector.
Gary Gensler, the current president of the Securities and Exchange Commission (SEC), initiated an explicit campaign against cryptocurrency exchanges at the commencement of the previous year.
His theory is that a significant number of the cryptocurrencies that the exchanges offer for sale should be classified as unregistered securities and, as a result, should be delisted.
The SEC was also targeting Coinbase, the largest crypto exchange in the United States, and a company listed on the Nasdaq in June 2023.
Nevertheless, the exchange refrained from yielding to pressure and responded accordingly. Subsequently, he submitted a counter-report to the SEC. In reality, Coinbase accused the SEC of failing to provide specific guidance on how to conduct itself, even in response to their explicit requests.
The issue with exchanges such as Coinbase is that they may permit the trading of unregistered securities, as the SEC has stated.
The SEC, the regulatory authority for securities and exchanges in the United States, has been unable to issue guidance to the exchanges regarding their conduct. It has merely submitted complaints against them, thereby effectively postponing any decision until a court determines it.
It is crucial to recognize that the United States lacks any form of crypto regulation, and it is exceedingly challenging to attempt to apply the regulations of conventional markets to the new and innovative crypto market.
The primary issue is whether and which tokens or cryptocurrencies should be regarded as securities. This issue can only be resolved by the courts, as only a court has the authority to determine whether a specific cryptocurrency or token should be classified as a security. The sole issue is that the courts would be required to render a decision on each cryptocurrency or token on an individual basis, and there are tens of thousands of them.
Each and every person knows that Bitcoin is a commodity and not a protection. As far as BTC is concerned, the issue does not even arise, as the SEC and Gary Gensler appear to concur.
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