Coinbase executives defended the platform and called for clear rules for cryptocurrencies

Coinbase executives defended the platform and called for clear rules for cryptocurrencies

The executives of coinbase defended this Wednesday the company from a lawsuit filed by US securities regulatorclaiming that the cryptocurrency sector lacks a clear set of guidelines.

The Securities and Exchange Commission (SEC) alleged Tuesday that Coinbase traded at least 13 crypto assets that are securities and should have been registeredincluding tokens like Solarium, Cardano and Polygon. In turn, he claimed that the cryptocurrency was operating as a market, broker, and clearinghouse without registration.

“It is not appropriate for the regulator to take action if we do not have a clear rule book and clear guidance”said the CEO Brian Armstrong in an interview in CNBC.

“They say that everything that is not bitcoin is a security. Well, that is not our interpretation of the law”he added.

Coinbase has been lobbying the SEC to issue a new specific regulations on cryptocurrencies since last year and in April asked the US Court of Appeals for the Third Circuit to force the regulator to respond.

The court ordered the SEC on Tuesday to provide a response within a week.

Likewise, Coinbase also tried to distance itself from its rival Binancewhich was also sued by the SEC on Monday.

Coinbase’s chief legal officer, Paul Grewalsaid to Reuters late Tuesday that the two lawsuits are materially different.

Binance did not respond immediately to a request for comments.

Coinbase shares were recovering this Wednesday and rose 3.8% to $52.94.

Why did the SEC sue Binance?

The SEC filed a lawsuit against Binance and the CEO on Monday Changpeng Zhao for alleged violations of securities laws. Additionally, this legal action comes after the Commodity Futures Trading Commission took earlier regulatory action against the company.

A day after regulators sued Binance and its CEO for allegedly operating a “deception network,” the United States Securities and Exchange Commission asked a federal court for a temporary restraining order to freeze the company’s US assets. Binance cryptocurrency exchange.

Source: Ambito

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