The legal dispute between the crypto exchange Coinbase and the Securities and Exchange Commission (SEC) is still ongoing. Coinbase maintains that the SEC is overreaching its powers as there are no clear laws governing cryptocurrencies.
However, EX-SEC Chief John Reed Stark believes Coinbase is wrong, citing 80 years of legal precedent.
Coinbase’s stand is based on the fact that the SEC is treating digital assets as securities and is not providing clear guidelines for the industry. They have appealed the March court ruling that the SEC’s case was allowed to go, saying it is not fair to use the existing securities laws for a new asset class.
However, John Reed, opposes this opinion. He feels that Coinbase has enough clarity thanks to the court’s ruling and eight decades of case law. He makes the same claims that other cryptocurrency businesses like Kik, LBRY, and Telegram—all of which were the subject of an SEC investigation—also made.
Crypto supporters state that many digital activities are not securities, and the SEC’s approach is limiting innovation. The SEC, on the other hand, is worried about the investors in this fast-growing market that is being developed.
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