Crypto Industry Rallies Behind Coinbase in SEC Battle

SEC’s Lack of Clear Rules Challenged

The crypto industry is pushing the SEC to set clear rules for the crypto market. Major players like Paradigm, the Crypto Council for Innovation, and the US Chamber of Commerce are supporting Coinbase’s appeal to the SEC for specific guidelines.

Paradigm’s Arguments

Paradigm argues that the SEC has not provided clear rules for cryptocurrencies, tokens, and trading platforms. This has created uncertainty for businesses and hindered judicial review.

Crypto Council’s Concerns

The Crypto Council asserts that the SEC’s current approach is too vague and does not account for the unique characteristics of crypto assets. Unlike traditional securities, crypto assets are decentralized and do not have a centralized issuer.

Coinbase’s Petition

Coinbase has petitioned the SEC to establish clear guidelines on when crypto assets should be classified as securities. The company argues that the industry needs regulatory oversight and is willing to comply with well-defined rules.

Industry’s Demand

The crypto industry is calling on the SEC to initiate rulemaking for the crypto sector. The demand stems from the SEC’s refusal to provide comprehensive rules, which is hindering the industry’s growth.

Coinbase’s Stock

Coinbase’s stock has declined over 4% in the last 24 hours, mirroring the price movement of Bitcoin, which has dropped 5%.