Coinbase has joined the “resistance forces” in the face of Ripple’s decision to sue the US Securities and Exchange Commission. However, it is still unclear which side will emerge triumphant from this conflict.
Coinbase CEO Brian Armstrong warned in a tweet on September 8 that the SEC could take legal action if the exchange develops Lend cryptocurrency savings accounts based on the USDC stablecoin, paying clients 4% per year. The reason for this was that the SEC suspected the financial product of including unregistered securities.
A remark from Ripple CEO Brad Garlinghouse came an hour after Armstrong’s tweet. “Welcome to the party, buddy,” he said to one of his coworkers. But, of course, all of this was an irony given one of the industry’s least enjoyable events: a protracted dispute between the US Securities and Exchange Commission and the crypto firm Ripple that has been ongoing for nearly a year. A claim against Ripple, which allegedly traded in unregistered securities for seven years, triggered the event. Mark Cuban, the billionaire, and Jesse Powell, the Kraken crypto exchange CEO, agreed that going “on the attack” against the SEC was a good idea.
In turn, Armstrong accused the SEC of using “intimidation behind closed doors” tactics and suggested that the US Securities and Exchange Commission’s representatives pay more attention to the broader cryptocurrency business. He was most likely referring to the department’s utter contempt for dozens of scam projects in the field of decentralized finance and other evident scams going place right in front of its eyes while focusing most of its attention on the work of lawful entrepreneurs.
Uniswap, one of the largest and most transparent DEXs, garnered the SEC’s attention in addition to Ripple and Coinbase. Her team has stated that they are willing to work with the commission, but the rest of the crypto world is still baffled as to why there is such a strong interest in DEX and suspicions of unregistered securities trading. Some remarked that the SEC has “one diagnosis for everyone when it comes to digital currencies.”
Even more discouraging is that not long ago, everyone was ecstatic with the advent of Gary Gensler, a new chairman who was interested in bringing the crypto sector and American justice together. However, there have been no observable results of this “synergy” to date. One of the reasons for this, according to analysts, could be pressure on Gensler from the highest levels of government, including the White House and the US Treasury, which see cryptocurrencies as a direct danger to the US dollar.
Large crypto firms are adamant about protecting their ability to operate in court in some fashion, and their next moves could be pivotal for the industry’s future. If Coinbase can secure the endorsement of significant industry players such as Powell, Cuban, Garlinghouse, and others, the SEC will almost certainly be forced to back down. Or, at the absolute least, be ready to back up your concerns about unregistered securities trading with something more permanent than “investor protection.”