The crypto community strikes back with the SEC after Coinbase announced that the agency is considering suing the company.
SEC threatens Sue Coinbase
Just a day earlier, the first crypto company in the US, Coinbase, went public Blog that the SEC told them they would sue the company if it rolled out its loan service.
After months of trying to deal with the @SECGov We recently received notification of our planned Coinbase Lend product that it intends to take legal action against us. We believe that dialogue is at the heart of good regulation, even though the SEC may not. https://t.co/OumvyTPQdj
– Coinbase (@coinbase) September 8, 2021
The blog states that when the company contacted the SEC to provide them with an overview of their loan service, which is slated to roll out in a few weeks, the SEC replied for no reason other than that they viewed the service as collateral, if Coinbase continues to start the loan service, the agency will sue him.
“The SEC informed us that it considered Lend a security but did not want to say why or how it came to this conclusion.”
Crypto community strikes back
Former Fed prosecutor for the US District Attorney James K. Filan., Sees the patchwork behavior of the SEC tweeted The SEC would do anything to control all of the crypto. Filan is a member of the American Bar Association and is also a well-known figure among crypto enthusiasts because of his involvement in the SEC Ripple lawsuit.
Coinbase CEO, Brian Armstrong tweeted When they end up in court, they’ll end up with the regulatory clarity the SEC couldn’t provide, but – he claimed – regulation through litigation shouldn’t be the first, but the last resort.
Comment on Armstrong’s tweet billionaire and famous NFT enthusiast Mark Cuban beaten up SEC, as he stated that the agency is unable to handle the affairs on its own and is afraid of making mistakes. He further criticized the SEC:
“Just the people you don’t want to affect the new technologies. You have to go on the offensive.“