Recently, Coinbase’s CEO, Brian Armstrong made a big announcement that US Securities and Trade Fee (SEC) will withdraw the case against Coinbase. The trial was filed by SEC in 2023, alleging that Coinbase worked as an exchange, broker and clearing agency without proper registration and offered security trading without registration.
Armstrong announced it as a major win, which proves that coinbase was correct and he always followed the rules. Significantly Coinbase won Crypto Law’s legal battle against SEC Also done.
Sec’s charge and coinbase defend
SEC had installed alligations on coinbase that the company offered unauthorized investment while doing security law violations. In addition, SEC said that Coinbase gave permission for security trading of proper registration, which used to disadvantaged investors from legal protection. In 2023, SEC also claimed that Coinbase had earned billions of dollars through these activities since 2019.
However, Coinbase always opposed these elegations and stated his position right. The company said that it did not do wrong in any way and no rule was done in its management. Armstrong and Corporate Executives saw it as an aggressive stance of SEC, targeting Crypto companies.
Comments of Brian Armstrong and Paul Grewal
Brian Armstrong described this big success of SEC in his post on X (Previously on Twitter) as ‘Major Victory’. He said that this step is proof that coinbase was always right and it proofs that Crypto Business is now getting political support, due to the Electoral Backup of Special Former President Donald Trump. Armstrong also said that after the victory in Trump’s election, now the posibility to loosen the rules for Crypto Business has increased.
Coinbase’s Eminent Prison Officer, Paul Grewal also described this decision as a corrective step and said that it was neither an agreement nor compromise, but it was an attempt to correct a Rong activity. Grewal cleared that the company will continue to work on clear and transparent rules for Crypto Business and would work closely with SEC and Congress to prepare a Higher Regulatory Framework.
SEC launched new task force
Recently, SEC launched a new task force with the aim of creating a clear regulatory framework at the Favor of Crypto Assets. The main objective of this task force is to create a solid and effective regulatory framework for crypto assets, which will be according to the industry’s development nature.
Conclusion
The lawsuit between Coinbase and SEC has now reached a critical junction, in which SEC has withdrawn its elements. This step is considered an imported Victory for Crypto Business. This decision also indicates that an extra Sunlit and Beneficial Regulatory Framework can now be prepared for Crypto Corporations. Coinbase has always done its business with clear rules and trusts and now it will be interesting to see how US Govt and Regulatory Establishments in Future control this business.
