Here’s Why The SEC Is Fighting A Losing Battle Against Coinbase – Coinpedia Fintech News
The Securities and Exchange Commission (SEC) has been clashing with crypto and crypto-related businesses for some time now. On a recent occasion, Coinbase, the largest crypto exchange in America, received another Wells notice from the SEC, sparking concerns in the cryptocurrency industry. However, Scott Melker, author of the Wolf Den newsletter and host of The Wolf Of All Streets podcast, believes that the SEC’s actions against Coinbase will ultimately lead to its downfall.
Why the SEC is Bound to Fail in Its Fight Against Coinbase
According to Melker, the SEC’s ongoing fight with Coinbase over the agency’s objections to the Lend product and an unspecified portion of Coinbase’s listed digital assets, staking service, Coinbase Earn, Coinbase Prime, and Coinbase Wallet, is a battle that the agency cannot win.
Melker believes that this time, the SEC has picked a fight with the wrong party.
The author argues that the SEC’s previous tactics of spray-and-pray won’t work this time. Coinbase has faced the SEC’s oversight in the past, but Melker suggests that the exchange’s confidence is now at an all-time high.
Coinbase is Ready to Fight Back
Melker states that Coinbase has an army of users and allies who are ready to support the company. Additionally, Coinbase’s deep pockets ensure that it can afford to fight a prolonged legal battle with the SEC.
Moreover, Coinbase has remained compliant with the law, as it does not offer securities to its customers, and its staking services do not meet the legal definition of a security, which Coinbase CEO Brian Armstrong has explained to the SEC repeatedly.
The SEC’s Overstepping Will Lead to Its Downfall
Melker believes that the SEC has gone too far by playing judge, jury, and executioner. He predicts that the industry’s united front will triumph, resulting in much-needed clarity and a more inclusive financial future. Melker’s argument is that the SEC’s days of dabbling in crypto enforcement may be numbered, and the industry may come out stronger after this legal battle, despite the inevitable bumps in the road.
Future of Crypto Hangs in the Balance
This may be a pivotal moment in the industry’s history, and it will be remembered as a time when the crypto industry stood up to the SEC and paved the way for a brighter future.
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