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, a former SEC Chief 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.
John Reed Stark, SEC Chief who retired from the office, opposes this opinion. He believes the court’s decision and 80 years of legal precedent provide ample clarity for Coinbase. He cites the same arguments that were used by other crypto companies that were under SEC investigation, such as Kik, LBRY and Telegram.
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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