Breaking: Coinbase Challenges SEC’s Expanding Exchange Definition

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As a seasoned crypto investor with a decade of experience navigating the volatile waters of digital currency markets, I find myself once again witnessing the ongoing dance between Coinbase and the SEC. The latest tango revolves around the SEC’s proposition to broaden the definition of exchanges, which includes Decentralized Exchanges (DEXs) without proper analysis, according to Coinbase’s Chief Legal Officer, Paul Grewal.

Coinbase, a prominent figure in the crypto trading world, has countered a recent proposal by the U.S. Securities and Exchange Commission (SEC) aiming to widen the scope of what constitutes an exchange. In a post on social media platform X, the company’s top legal officer, Paul Grewal, announced that Coinbase has formally objected to this broad new definition.

Coinbase and SEC: Unending Regulatory Disparity

As a researcher, I find it’s quite common for regulatory bodies and market exchanges to have disagreements on regulatory matters. Specifically, in this case, Paul Grewal highlighted that the commission’s definition encompassing Decentralized Exchanges (DEXs) lacked thorough analysis before its inclusion.

Today, Coinbase voiced additional worries to the Securities and Exchange Commission (SEC) regarding their plan to widen the scope of what constitutes an “exchange.” In essence, the SEC’s proposal appears to be insufficiently thought-out, relies on unreasonable presumptions, and fails to demonstrate that any regulation is required due to a non-existent issue.

— paulgrewal.eth (@iampaulgrewal) August 12, 2024

One ongoing point of disagreement between these two parties revolves around the implementation of regulations or policies regarding Bitcoin ETFs. Lately, executives from the exchange and VanEck have accused the regulator of causing higher borrowing costs for Bitcoin ETFs.

This is a developing story, please check back for updates!!!

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2024-08-12 18:11