Why US SEC May Lose Against Coinbase, Lawyer Explains
Also Read: US Court Interrupts SEC’s Enforcement Against Crypto Exchanges
US SEC Making Faulty Claims?
Attorney James Murphy mentioned that the U.S. SEC is alleging that Coinbase acted as an illegal unregistered securities exchange since 2019. However, it is important to note that, back in April 2021, the commission itself approved Coinbase’s application to go public.
He highlighted that the U.S. SEC Chairman, Gary Gensler on May 6, 2021, testified ahead of Congress under the current law, that the agency does not hold authority to regulate crypto exchanges. Going with the testimony, Attorney suggests that the commission should lose its claims in court.
The attorney added that the U.S. SEC chair’s testimony was entirely correct. Congress here needs to answer which agency holds the authority to regulate crypto exchanges in the country. Meanwhile, the commission, itself cannot assert its legal authority over the matter. Read More Coinbase News Here…
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Must Read2/ After he was confirmed to his post as Chairman of the SEC, Gensler testified to Congress, on May 6, 2021, that:
THE SEC DOES NOT HAVE AUTHORITY FROM CONGRESS TO REGULATE CRYPTO EXCHANGES.
Watch this 👇 pic.twitter.com/mk48S36FHm
— MetaLawMan (@MetaLawMan) May 3, 2023
Can Coinbase Make A Comeback?
As of now, Coinbase is facing charges for operating illegally, its legal team will surely go after Gensler’s testimony registered on May 6, 2021. The legal expert mentioned that all the testimony of an SEC chairman gets evaluated internally before they go ahead to testify.
This directly suggests that there will be a whole lot of evidence in the form of emails, meeting notes, memos and internal messages recorded before the testimony. These communications among the department’s officials will display how a consensus was built in the U.S. SEC that lacked legal authority from Congress in regulating crypto exchanges.
Also Read: We Don’t Need More Digital Currencies, Say SEC Chair
The back to back legal actions taken by U.S. SEC has led to increased uncertainty in the crypto market. However, Coinbase (NASDAQ: COIN) share price took a major hit due to legal complications. COIN price is now trading at $52.95, down by 14% in the last 5 days.