Coinbase, one of the leading crypto exchanges, has joined the growing list of companies facing legal threats from the Securities and Exchange Commission. With Ripple, Uniswap, and other crypto names facing similar legal threats, will they be able to reach an agreement on how their coins should be regulated?
After the SEC threatened to prosecute the business if its high-yield Lend product was launched, Ripple CEO Brad Garlinghouse reacted immediately. About 90 minutes after Armstrong’s tweet, he replied with a meme from “Die Hard,” in which Bruce Willis says, “Welcome to the party, mate.”
The inference is that Ripple has been fighting the SEC for over a year, and Coinbase has joined the fight, whether it appears so or not. “You have to go on the offensive,” Mark Cuban advises Armstrong. Although Armstrong’s tweets may be said to be already in breach, Cuban refused to comment for Decrypt (“It’s up to them”). He jokingly continued, accusing the Agency of “intimidation behind closed doors,” saying, “It would be excellent if [advice] was truly taken in equal quantity across the industry.”
The SEC sues Ripple for unrecorded securities offering for XRP cryptocurrency transactions. Why has the SEC been waiting so long before the prosecution is filed and why seems XRP (Ripple) and ETH (Ethereum) have different legal requirements? The leading cryptography firms are being attacked and challenged by demanding that regulations be fair and uniform.
The battle of Ripple with the SEC is over whether its XRP sales tokens have been unsuccessfully securities. Leading companies in the crypto industry are attacked and reprimanded to demand fair and consistent rules outlining what is and what is not lawful.
Crypto lawyer Jake Chervinsky notes out that, despite disregarding other “outdated frauds,” robbery pulls and pump-and-dumping at DeFi, an SCE has chosen to test Uniswap exchange for its most transparent companies in the DeFi. They concluded that a court can do better to roll the wall than the prevailing SEC position of opaque and stringent enforcement encryption.
Gary Gensler, the incoming SEC chief, was teaching a blockchain course at M.I.T. just a few months ago when this unexpected incident occurred. All Cryptoland businesses, traders, miners, and investors are now apprehensive about what the Gensler dictatorship will do next. Until recently, this has not been a crypto enthusiast (do not breathe with the approval of the U.S Bitcoin ETF).
But there are speculations that he may be subjected to pressure from the White House and Treasury officials, who consider cryptocurrency a dollar risk. Or maybe the SEC really believes that investors should be protected here. Many of these same investors have likely hated it because it prevents new ways of earning more than 5% interest in savings accounts instead of 0.5% or less.
The struggle against the federal government is a difficult one, but despite recent infighting, prominent crypto names are stronger than ever. Whatever the reasons, the major crypto companies are fighting dogs, and what they do next will define the industry’s future. What they are going to do next?
The time has arrived for large companies because the SEC seems open to being anti-crypt, to go fully according to John McClane. If Kraken and Coinbase are able to stand side by side, they may construct a unified front with Uniswap, Ripple, and any other SEC-controlled crypto companies. Such an agreement would provide a uniform legal approach to the business. In the past, the federal government has strangled other expanding sectors like internet poker.