tl;dr
The cryptocurrency industry is pushing the US Securities and Exchange Commission (SEC) to establish clear rules and regulations for the crypto market. Major players, including Paradigm, the Crypto Council for Innovation, and the US Chamber of Commerce, have argued with the district court to support ...
The cryptocurrency industry is pushing the US Securities and Exchange Commission (SEC) to establish clear rules and regulations for the crypto market. Major players, including Paradigm, the Crypto Council for Innovation, and the US Chamber of Commerce, have argued with the district court to support Coinbase’s appeal to the SEC to provide specific guidelines for the crypto industry.
In a court filing submitted on Monday, Paradigm expressed interest in the case, highlighting the SEC’s continued refusal to issue final rules and guidance regarding cryptocurrencies, tokens, and related trading platforms. The industry stakeholders argue that the SEC's current regulatory approach is creating ambiguity and hindering the progress of the industry. Coinbase has also petitioned the SEC to create clear guidelines for when crypto assets should be classified as securities, emphasizing the need for regulatory oversight and well-defined frameworks. Paradigm's legal team explained that despite bringing enforcement actions in the crypto space, the SEC has not adequately explained the legal basis for its authority. The Crypto Council for Innovation and other industry stakeholders assert that the SEC’s current regulatory framework does not address the unique characteristics of crypto assets, and it hinders the industry's progress. Unlike securities, crypto-assets do not rely on a centralized issuer and operate within decentralized networks and communities. As a result, the SEC’s current framework does not provide digital asset holders with the material information they need and imposes unnecessary intermediaries that hinder the disintermediated nature of crypto trading platforms.
These developments ultimately point to the industry's demand for clear guidelines. The SEC’s persistent refusal to provide comprehensive rules and guidance is hindering the growth and development of the crypto industry, prompting major players to challenge the regulatory approach and demand a more stable balance between regulation and innovation.
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