EddieJayonCrypto

 14 Aug 24

tl;dr

Coinbase submitted a comment letter criticizing the US Securities and Exchange Commission's (SEC) cost-benefit analysis of a proposed rule. The letter argued that the SEC failed to assess the rule's economic impact on efficiency, competition, and capital formation, especially in relation to decentra...

Coinbase Challenges SEC's Proposed Rule

Coinbase has criticized the SEC's cost-benefit analysis of a proposed rule, citing flaws and a lack of essential information on DEXs.

The letter argued that the SEC failed to assess the rule's economic impact on efficiency, competition, and capital formation, especially in relation to decentralized exchange (DEX) operations.

Coinbase urged the SEC to withdraw the proposal and redo it after conducting thorough research, highlighting the negative impact on smaller DEXs, potentially pushing them out of the market due to high compliance costs.

The letter also questioned the validity of the rule's cost analysis, emphasizing the impact on efficiency and capital formation.

Coinbase's chief legal officer stated that the SEC's approach is arbitrary and irrational, calling for a withdrawal of the proposal and a comprehensive redo after thorough research.

The letter also criticized the SEC for failing to gather essential information on DEXs, making unjustified assumptions, and relying on inconsistent approaches that create uncertainty for industry participants and courts.

Coinbase also highlighted the rule's negative impact on smaller DEXs, potentially creating an unfair advantage for larger incumbents, and questioned the validity of the rule's cost analysis.

Disclaimer

The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.
 14 Nov 24
 14 Nov 24
 14 Nov 24