Coinbase claims the US SEC is determined to stifle the cryptocurrency industry.

According to cryptocurrency exchange Coinbase, the United States Securities and Exchange Commission (SEC) intends to continue its regulation-by-enforcement strategy towards the cryptocurrency industry in order to stifle its growth. In a filing with the U.S Court of Appeals on May 31, Coinbase stated that the SEC is committed to destroying digital assets and is unwilling to establish clear and fair guidelines for the industry. Coinbase argued that further attempts to engage with the agency would be futile and undeserved. The exchange also highlighted that the SEC believes its rules are sufficient, as it has already taken legal action against several firms for non-compliance. Coinbase urged the court to consider the views of other SEC Commissioners who share the belief that the agency is impeding the development of digital assets. One such Commissioner, Hester Pierce, proposed a cross-border sandbox program between U.S and U.K. blockchain firms to explore tokenized securities. Coinbase also criticized the SEC’s attempt to downplay its heavy-handed approach by suggesting that only a small segment of the industry may face compliance difficulties. The SEC filed a lawsuit against Coinbase in June 2023, accusing the exchange of failing to register as a broker or securities exchange. Although Coinbase has sought to have the case dismissed, the SEC has consistently opposed its efforts, resulting in the case remaining unresolved. Despite expectations that Coinbase would secure a full dismissal, legal experts predicted a 70% chance of success, it was not successful.