The US Securities and Exchange Commission (SEC), having approved several bitcoin exchange-traded funds (ETFs), is now taking Coinbase and Binance to court. This legal confrontation could have profound implications for the future of the cryptocurrency industry.
The major challenge of classifying cryptocurrencies
Last summer, the SEC filed a complaint against cryptocurrency exchange platforms Coinbase and Binance, accusing them of listing and trading digital assets that were not registered as securities. The SEC's legal teams clashed with those of the two companies this week, with the latter refuting the characterisation of their cryptocurrencies as securities.
Last summer, the SEC filed a complaint against cryptocurrency exchange platforms Coinbase and Binance, accusing them of listing and trading digital assets that were not registered as securities. The SEC's legal teams clashed with those of the two companies this week, with the latter refuting the characterisation of their cryptocurrencies as securities.
In June 2023, the SEC sued Coinbase and Binance for listing digital assets such as Solana (SOL), Filecoin (FIL) and Axie Infinity (AXS), claiming that these assets were actually unregistered securities. The cryptocurrency community has reacted strongly to these lawsuits, despite prior warnings from SEC Chairman Gary Gensler about their likelihood. Several amicus curiae briefs were filed by lawmakers and industry lobbyists, arguing for the courts to dismiss the lawsuits.
Other relevant developments
- Court hearings: Hearings have been held, including some tough questions from Judge Katherine Polk Failla. However, no decision has yet been taken.
- Chevron Doctrine: There has also been a hearing before the US Supreme Court regarding the Chevron Doctrine, which gives federal regulatory agencies discretion in interpreting statutes for rulemaking. This doctrine could be challenged, which would have implications for the cryptocurrency industry and Congressional legislation.
Conclusion
Chevron Doctrine: There has also been a hearing before the US Supreme Court regarding the Chevron Doctrine, which gives federal regulatory agencies discretion in interpreting statutes for rulemaking. This doctrine could be challenged, which would have implications for the cryptocurrency industry and Congressional legislation.
