Coinbase Responds To SEC Lawsuit: Impact Of Regulatory Actions Makes US Unable To Compete In Global Crypto Industry

The Coinbase crypto exchange responded to the actions of US regulators. (Photo; Doc. Coinbuzzfeed)

JAKARTA - The leading crypto company Coinbase has provided an official response to a lawsuit filed by the US Securities and Exchange Commission (SEC) against them. According to Coinbase, the strategy taken by the SEC could have a negative impact on the United States' ability to compete in the crypto market internationally.

In a statement issued by Paul Grewal, chief legal officer and general adviser at Coinbase, he highlighted his concern about SEC law enforcement approaches without a clear regulatory framework for the digital asset industry. Grewal stated that this approach could harm American economic competitiveness and companies like Coinbase which have committed to complying with US regulations.

On the other hand, Grewal also emphasized that despite his side facing the lawsuit, Coinbase will continue to operate as usual. The company encourages legislation that allows the development of fair rules in a transparent and consistently implemented manner.

Grewal stated that litigation was not the right solution. He quoted, "We need legislation, not litigation, to create a clear framework for the digital asset industry."

The SEC's lawsuit against Coinbase comes just a day after they sued Binance, the world's largest crypto exchange. The SEC accused Coinbase of operating as an unregistered broker, exchange and clearing agency, raising concerns about potential financial regulatory breaches.

Coinbase's response reflects the company's confidence in the need for a legislative framework that provides clear and fair rules for businesses in the digital asset industry. The outcome of the legal battle between Coinbase and the SEC has had significant implications for the entire cryptocurrency industry recently.