Coinbase (NASDAQ:) has taken a proactive stance in the current cryptocurrency regulation debate. The leading digital currency exchange filed a legal brief with the Third Circuit Court on Wednesday, calling for clearer guidance following the Securities and Exchange Commission’s (SEC) recent actions against peer Kraken. Coinbase is relying on the SEC case to seek a writ of mandamus, an extraordinary warrant from a court that orders a public official to properly discharge his or her duties.
The move comes after the SEC on Monday accused Kraken of operating without proper registration and endangering client assets by misappropriating funds. The regulator also classified several cryptocurrencies, including ADA and SOL, as securities, a decision that has significant implications for how these assets are regulated and traded.
Coinbase CEO Brian Armstrong has shared his company’s commitment to regulatory compliance. On Sunday, he highlighted Coinbase’s adherence to money transmitter laws, contrasting Binance’s legal issues. Mr. Armstrong stressed the importance of stability over growth during times of regulatory uncertainty and criticized the lack of clear guidelines in the United States, which he said is pushing cryptocurrency transactions to the limit. stranger.
In response to the SEC’s charges, Kraken agreed to a $30 million civil penalty for its crypto asset staking services. The SEC is seeking further injunctive relief, conduct-based injunctions and disgorging of ill-gotten gains with interest due to poor internal controls and recordkeeping issues identified since at least September 2018.
Meanwhile, Bittrex Global is taking preemptive measures by advising its clients to convert their US dollars to euros or cryptocurrencies, likely in anticipation of possible SEC enforcement actions similar to those faced by Kraken.
As the industry awaits a progress report from the SEC by December 15, Coinbase’s request for clarity could mark a watershed moment in shaping the future regulatory landscape for cryptocurrencies in the United States.
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