Next SEC Chair Should Apologize to Crypto Industry

Coinbase CEO Brian Armstrong believes the following SEC chairman ought to apologize to the digital asset business for the Gary Gensler-led company’s dealing with of crypto.

In an X-post, Armstrong mentioned the SEC ought to drop all circumstances towards digital asset buying and selling platforms together with Coinbase and Binance.US.

Gensler’s actions have alarmed many within the crypto business, main some firms to go away the US for nations with extra crypto-friendly laws, such because the United Arab Emirates (UAE), El Salvador and Hong Kong.

Armstrong said that an apology from the following SEC chairman will not be sufficient to undo the injury attributable to the SEC below Gensler, “however it might start to revive confidence within the SEC.”

Cryptocurrencies and Securities: Conflicting Statements from the SEC

Armstrong additionally highlighted situations the place the SEC contradicted itself in prosecuting digital asset firms. He targeted on the query of whether or not cryptocurrencies are securities.

Additionally Learn: XRP Ledger Exercise Will increase as Ripple’s SEC Battle Continues

Gensler and the SEC have repeatedly mentioned that cryptocurrencies are securities as a result of they go the Howey take a look at. Nonetheless, in a latest footnote within the XRP lawsuit towards Ripple, the company claimed that cryptocurrencies characterize funding contracts and due to this fact can’t be thought-about securities.

Coinbase has been pushing the SEC to create new guidelines and a wholesome framework for buying and selling and itemizing cryptocurrencies in america, even submitting a petition for regulation in courtroom in 2022. In keeping with a Reuters report, the SEC denied the petition in 2023 and in September 2024, Coinbase requested a federal appeals courtroom to overturn that denial.