Coinbase Says “We’ll Continue To Operate” In Response To Lawsuit

Crypto News: Following the market-moving development surrounding the SEC lawsuit against the Coinbase crypto exchange, the crypto firm has officially responded to the claims made by the agency. According to Coinbase, the strategy taken by the SEC will do significant damage to United States’ ability to compete internationally in the crypto space.

Coinbase Calls For Legislation Instead of Litigation

In a statement issued by Paul Grewal, chief legal officer and general counsel at Coinbase, he expressed his concerns about the SEC’s “enforcement-only approach” in the absence of clear rules for the digital asset industry. Grewal argued that this approach is hurting America’s economic competitiveness and companies like Coinbase that have demonstrated commitment to compliance and US regulations.

Read More: Binance Unrattled With SEC Lawsuit, Introduces Bitcoin Ordinals Support Within 24 Hrs

However, Grewal also emphasized that despite the lawsuit, Coinbase plans to continue operating as usual. He called for legislation that allows fair rules for the road to be developed transparently and applied equally, stating that litigation is not the solution. An exact excerpt from Grewal’s statement while speaking about the recent legal action is as follows:

The solution is legislation that allows fair rules for the road to be developed transparently and applied equally, not litigation.

Coinbase Falters Under SEC Lawsuit

The SEC filed a lawsuit against the Californian exchange just a day after suing the world’s largest crypto exchange, Binance. In its lawsuit, the US watchdog accused Coinbase of operating as an unregistered broker, exchange, and clearing agency, raising concerns about potential violations of financial regulations.

With the Coinbase stock price plummeting by roughly 14% after the market-open, the company’s response reflects its stern belief on the need of a legislative framework that would provide clear and fair rules for businesses to operate. As the legal battle between Coinbase and the SEC unfolds, the outcome could have significant implications for the cryptocurrency industry as a whole.

Also Read: “We Don’t Need More Digital Currencies”: SEC Chairman Gary Gensler

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