Analysts on lawsuits against Binance and Coinbase

The lawsuits filed this week by the US Securities and Exchange Commission (SEC) against exchanges Binance and Coinbase provide new evidence that the country lacks a clear regulatory framework to oversee the cryptocurrency industry.

The lawsuits involve two of the largest user base cryptocurrency exchanges in the United States and the world, They will have to go a long and complicated way in order for the country to finally have clear rules for the cryptocurrency market. This is warned by attorneys and analysts who are closely following and involved in the SEC’s recent actions.

One such player is Paul Grewal, Coinbase’s head of legal. To the question ofHow long will it take to resolve the current dispute between the SEC and cryptocurrency exchanges?replies that it will be a long legal battle, “maybe several years”.

added in a podcast on June 8 that Coinbase has indeed long sought regulatory clarity, “because before we became a public company in 2021 (Coinbase is listed on Nasdaq) cWe started demanding regulatory clarity and there’s even a formal petition that’s now the subject of litigation in federal court.

The request mentioned by Grewal was introduced in July of last year, and now the court is asking the SEC to respond to some of Coinbase’s requests within seven days or less.

A case that can go all the way to the Supreme Court

As such, the court wants to know whether the new lawsuit against Coinbase means the SEC is denying its request for clear regulation, or because the agency needs more time to review the request.

On Tuesday, June 6, thereafter SEC accused Coinbase of violating rules and offering unregistered securities through his Grewal staking service he showed in a tweet that the agency “could not proceed with the litigation until it has decided to deny our request for settlement.”

“We remain of the belief that traffic rules, whether through legislation or rulemaking or both, should take precedence over enforcement action. That’s why we filed for regulation with the SEC almost a year ago.”

Paul Grewar, Coinbase’s Chief Legal Officer.

The dispute between the SEC and cryptocurrency exchanges It could even go as far as the US Supreme Court.as Goal Kiran Nasir Gore, a dispute resolution attorney. She believes the Binance case may be of interest to the court because it “contains allegations of wrongdoing, diversion of client funds and improper asset mingling.”

However, the main problem remains The United States does not have clear rules to clarify which assets are valuable and which are not, and the Supreme Court could provide that guidance, as commented by experts.

“It will take time, but regulatory clarity will come”

For Dan Morehead, founder and managing partner of cryptocurrency fund Pantera Capital, the solution “for better or for worse” won’t come quickly. “And so take the time it takes, which is the most important thing The conflict between the SEC and the exchanges Binance and Coinbase will bring regulatory clarity It’s the only thing nobody expects, but it’s going to happen anyway,” he added.

Morehead worries that as long as the dispute lasts and the SEC remains aggressive towards the industry, US cryptocurrency trading will shift to other foreign-registered platforms.

“Sometime in the last year, 95% of digital asset trading was conducted outside of the United States. I agree that bad actors should be prosecuted, but one must also recognize that most people use cryptocurrencies for very legitimate acts and it is better if this happens in the United States.”

Dan Morehead, founder of Pantera Capital.

For his part, Jay Clayton, a former SEC chief, added: “What stumbles us in the cryptocurrency market is the belief that new technologies could do it.” escape the regulatory framework and pose a problem for the financial system“.

Clayton also agreed, stressing that the cryptocurrency ecosystem needs to do this a regulation adapted to its specificities, capable of providing security to users, as he explained during a broadcast interview BloombergLive.