Mark Cuban talks about Coinbase’s lawsuit: “No one will trust the SEC”
Mark Cuban comments on Coinbase lawsuit: "SEC loses trust"
Author: bitcoinist, Compiled by: Blockchain Knight
Mark Cuban, the owner of NBA’s Dallas Mavericks and a crypto enthusiast, recently expressed his concern on Twitter about the SEC’s recent handling of complaints against crypto exchanges, particularly Coinbase.
He warned that “nobody trusts them”. But why not trust a US government agency that is designed to protect investors?
This week, the SEC filed a lawsuit against Coinbase, accusing the crypto exchange of “trading securities that were not registered since at least 2019, in violation of US securities laws.”
The complaint also noted that Coinbase acts as a broker, exchange, and clearing agency, something that traditional financial platforms do not do. In addition, the committee pointed out that several of Coinbase’s products violate US law, including Prime, Staking, and Wallet.
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As a long-time advocate for crypto, Cuban expressed his disappointment with the SEC’s actions, believing that regulators could have created clear compliance plans to avoid the current legal dispute. At the same time, he accused the SEC of preferring litigation to providing guidance to companies like Coinbase.
“The SEC could have gone to them, created a clear plan for compliance and then if Coinbase or anyone else didn’t comply, they could sue over the specific legal issues in dispute. Instead, the SEC should do what was previously promised when requests are made by companies and find a lawyer for you to work with,” Cuban wrote on Twitter.
Cuban further noted in his tweet that the SEC’s actions are creating an atmosphere of mistrust, with companies afraid that engaging with regulators could lead to potential legal consequences.
Therefore, the current situation may make it more difficult for companies to achieve compliance, ultimately undermining the SEC’s responsibility to protect investors and maintain fair, orderly, and efficient markets.
Just a day before Coinbase filed its lawsuit, the world’s largest crypto exchange, Binance, and its CEO Changpeng Zhao also made similar complaints, reflecting the increasingly strict regulatory environment facing the US crypto industry.
The latest crackdown has had a series of impacts, such as Binance US delisting over 40 trading pairs.
SEC has been attacking various crypto companies under the guise of “protecting consumers” since FTX’s collapse last year. However, these actions may backfire on the SEC and its chairman Gary Gensler.
Coinbase has begun to fight back, demanding clearer compliance guidance from the highest financial regulatory body in the United States.
Currently, the US Third Circuit Court of Appeals has ordered the SEC to respond within a week.