In a stunning development, crypto exchange Coinbase has made a significant discovery, uncovering internal conflicts within the US Securities and Exchange Commission (SEC). Highlighting the Freedom of Information Act (FOIA) findings, Coinbase CLO Paul Grewal revealed a stark contrast between the SEC’s public stance on crypto regulation and its internal acknowledgments.
Significantly, the Coinbase FOIA findings sparked a major debate over the agency’s crypto regulatory approach. This article delves into the inconsistencies within the SEC’s regulatory moves.
Coinbase Reveals SEC’s Regulatory Conflicts: Details
Coinbase, a top crypto exchange, has obtained key details about the US SEC’s internal discussions surrounding crypto regulations, particularly concerning Ethereum and XRP. Via FOIA requests, Coinbase brought to light significant regulatory conflicts within the SEC.
Crypto Regulatory Gap
According to Coinbase’s Chief Legal Officer, Paul Grewal, a key finding includes a 2019 email from the SEC officials acknowledging a “crypto regulatory gap.” This recognition starkly contrasts with the agency’s subsequent argument that no such gap existed. This discrepancy has raised questions about the agency’s consistency and transparency in addressing crypto regulation. It is important to note that these inconsistencies once again come into the spotlight amid the SEC’s novel approach to crypto regulation.
Coinbase’s Silence in KuCoin Case
Further, Coinbase’s FOIA findings addressed the SEC’s alleged silence in the KuCoin case. In a 2023 email, the New York Attorney General’s Office has asked the agency to submit an amicus brief in the KuCoin case arguing that ETH is a security. However, the commission stayed silent instead of choosing to respond. This lack of response has contributed to ongoing confusion and ambiguity in the crypto industry regarding the regulatory status of major cryptocurrencies like Ethereum.
Technical Inadequacies
Moreover, Paul Grewal highlighted Coinbase’s findings regarding the SEC’s technical inadequacies. According to a 2023 email, the regulator struggled to open Coinbase’s video that the exchange submitted in response to a Well Notice. This technical issue has sparked concerns about the agency’s lack of interest in modern technologies and its ability to effectively regulate a rapidly evolving industry like crypto.
In conclusion, all these Coinbase FOIA findings suggest that there is a larger need for transparency and clarity in the SEC’s approach to crypto regulation.
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