Coinbase CEO Challenges SEC Amid Threats to Crypto Diversity

 Coinbase CEO Challenges SEC Amid Threats to Crypto Diversity

Coinbase CEO Challenges SEC Amid Threats to Crypto Diversity(Image-Getty)

Coinbase CEO, Brian Armstrong, Defends Crypto Diversity Amid SEC Pressure

Brian Armstrong, CEO of Coinbase, asserted that the crypto industry's viability was at risk if US authorities demanded the suspension of all trading assets except Bitcoin (BTC). In an interview, Armstrong revealed that the SEC had suggested this change while preparing to file a lawsuit against Coinbase for allegedly acting as an unlicensed broker.

Had Coinbase complied, over 200 tokens, excluding BTC, the most traded cryptocurrency, would have been delisted. Such a precedent would have created a problematic situation, compelling American crypto firms and the wider industry to operate outside the law unless registered with the SEC. Armstrong expressed his decision to challenge the SEC's request: "Our decision is kind of a no-brainer. I'd rather go to court and find out what the court says."

He further emphasized the SEC's position, explaining, "They came back and said BTC is the only non-security asset. We questioned their legal reasoning... They basically told us to delist everything except BTC and that they wouldn't bother to explain it."

Despite subsequent attempts by the SEC, Coinbase refused to comply. Gary Gensler, SEC's head, has argued for most coins to be classified as securities, excluding BTC, commonly seen as a crypto commodity.

In a June 2023 lawsuit, the SEC accused Coinbase of violating laws by not registering as a broker, national securities exchange, and clearing agency. Solana, Cardano, and Polygon were cited as examples of allegedly unregistered securities.

New ETH Upgrade Could Benefit dApps and Developers

A proposed Ethereum (ETH) upgrade, EIP-6968, may offer prominent dApps financial incentives through Layer 2 transactions. Developers could stake a claim on transaction fees generated by user activity on their smart contracts in exchange for a new token.

Kevin Owocki, a co-author of the proposal, explained, "With CSR, projects can band together and create an L2 around their shared values and share sequencer fee revenue based on who drives the most usage." This concept could provide a lucrative revenue stream for smart contract developers on Layer 2 solutions.

Originally proposed in May 2023, EIP-6968 gained traction when Owocki presented it at the EthCC conference. Crypto gaming enthusiasts view this as a positive move that could aid the growth of the casino crypto industry.

Disclaimer: This press release does not provide investment advice. Readers should conduct their own research before making any investment decisions based on the content of this press release. Thecoinrepublic.com is not responsible for any damage or loss caused by the use of content mentioned in this press release.