The chief legal officer of cryptocurrency exchange Coinbase says the US Securities and Exchange Commission (SEC) is determined to suppress the digital asset industry.
In a new thread on social media platform
According to Grewal, the SEC is claiming jurisdiction over the crypto industry without obtaining congressional approval or providing clear guidance.
“Today we filed our closing brief in the Third Circuit challenging the SEC’s denial of our petition for rulemaking. At the heart of this case is a single, conclusive sentence in the present SEC order.
That sentence – that ‘disagree'[d]’ that the SEC rules are unworkable for digital asset companies – no reasoned decision-making was provided; it offered no reason at all.
On this basic issue alone, the SEC’s order should be rescinded. The SEC cannot claim broad jurisdiction over a new industry without proper authorization from Congress and without setting clear rules.”
Grewal also says the SEC is determined to stifle the growth of the crypto industry by ignoring requests for regulatory clarity.
“Remarkably, the SEC says time and time again that it doesn’t matter whether the industry can comply with the rules. The SEC is out to stifle the digital asset industry and refuses to provide the necessary regulations the industry has been asking for to reduce the pressure.”
In July 2022, Coinbase petitioned the SEC to create a new regulatory framework for digital assets, but the regulator rejected the proposal, saying it disagreed with the idea that securities laws do not apply to the crypto- industry.
Coinbase has sought the court’s help to force the SEC to participate in rulemaking. In the crypto exchange’s latest filing, Coinbase says the SEC continues to clamp down on the industry.
“The SEC’s response is affirmative: affirming that the government intends to crush the digital asset industry. Affirming that the SEC will bring forward the most surprising, inconsistent and untenable bills to prolong its oppressive campaign.
And it confirms that anything short of an order to immediately begin rulemaking will further the dithering and delay at the heart of the SEC’s multi-pronged attack.”
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Featured image: Shutterstock/fran_kie