The year 2024 saw significant developments in the cryptocurrency sector under the influence of regulatory institutions. The US Securities and Exchange Commission (SEC), in particular, caused controversy in the sector with the lawsuits it filed against cryptocurrency exchanges and products throughout the year.
Coinbase’s Fight Against the SEC
The SEC has been particularly aggressive in accusing cryptocurrency companies operating in the US of selling “unregistered securities.” This has drawn the ire of major cryptocurrency exchanges like Coinbase, who have filed a lawsuit against the SEC, demanding regulatory clarity.
Coinbase’s lawyers are seeking clarification from the SEC on some unclear rules for Web3 businesses, which the company argues is creating uncertainty rather than clarifying regulations, which is negatively impacting the industry.
Judges Criticize SEC
During the trial, the SEC’s refusal to explain its policies on cryptocurrencies caused a backlash from the judges. Judge Stephanos Bibas expressed surprise that the SEC failed to explain its own stance. Judge Bibas said, “Bitcoin $63,729 “You won’t even tell us how the Howey Test applies to Ether… These tokens have been around for a long time, but you won’t take a stance on whether Coinbase trades with Bitcoin and Ether.”
Another judge, Thomas Ambro, also accused the SEC of deliberately refusing to explain the logic in its crypto-related policies, saying, “I don’t see the logic… To an outside observer, you’re going after crypto platforms as if you’re trying to crush the industry without setting the rules.”
The lawsuit criticized the SEC’s refusal to create new regulations and its attempt to control the cryptocurrency industry using existing laws, stressing that this approach could stifle innovation and stall the development of the industry.
These developments are seen as an important step towards eliminating regulatory uncertainty in the cryptocurrency sector. The court’s criticisms of the SEC may lead companies operating in the sector to expect a clearer regulatory framework in the future.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
