Tensions in the crypto industry are rising again after Coinbase released details of talks with the SEC, which refuses to release the necessary guidance and wants to sue the crypto exchange for its new Lend program.
This is the first time that the crypto company and its Chief Legal Officer have published a publication describing their feelings about the dishonest behavior of the US Securities and Exchange Commission.
The whole case was started by the final statement from the SEC on the long-prepared program Lend, which Coinbase wanted to launch in a few weeks.
The U.S. Securities and Exchange Commission (SEC) said they consider Lend to involve security and therefore, if Coinbase launches the program, they will sue them.
Coinbase has therefore requested an explanation of why the SEC thinks it is a security, as well as guidance setting out the details of the classification of such a financial product.
As a result, the SEC did not provide any information, which, in addition to the Chief Legal Officer, offended CEO Brian Armstrong himself, who also decided to publish an extensive statement on his Twitter.
6/ They refuse to tell us why they think it's a security, and instead subpoena a bunch of records from us (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why.
— Brian Armstrong (@brian_armstrong) September 8, 2021
Brian also points out that there are many crypto companies on the market that offer this type of program and the lending function but have not been stopped or discriminated against as in the case of Coinbase.
In the final, however, the biggest paradox is that Gary Gensler, as the new chairman, said in March this year, „It's important for the SEC to provide guidance and clarity,“ and today we are witnessing the SEC refusing to release guidelines that classify what is a security and why Coinbase wants to sue.
We believe and hope that this move by Coinbase, which has decided to disclose the background to this proceeding, will force the SEC to change its approach and, in the case of a court, provide regulatory clarity as well as guidance for all crypto companies.
