Court judge says Coinbase violated securities law because of SEC’s mistake
The latest court ruling indirectly stated that the US SEC created a situation for the crypto sector so that companies could violate securities laws.
The United States Securities Exchange Commission (SEC) is the dominant US financial sector regulatory body. For a few years, this independent government regulatory body regulating the crypto sector on behalf of the existing traditional securities laws, which were developed several years back before the origin of Bitcoin. In short, the US SEC is trying to forcibly regulate the Crypto sector under traditional rules, which do not apply perfectly against the nature of digital assets.
In the latest court ruling, the judge said that the US SEC body was aware of all the crypto regulatory uncertain situation, and also the SEC agency was able to stop Coinbase from providing unregistered securities offerings.
According to the court judge, it was the SEC’s duty to inform the Coinbase exchange that it was violating the Securities Act, before going public.
“Simply because the SEC allows a company to go public does not mean that the SEC is blessing the underlying business or the underlying business structure or saying that the underlying business structure is not in violation of the law,” the court judge said.
The court judge also said that she is surprised that the SEC agency failed to provide any guidance/warning to the Coinbase exchange ahead of its public listing plan.
The statement passed by the court judge is showing that the court is aware of the whole game and that the SEC agency tried its best to create a situation where the Coinbase exchange could violate laws.
In early June of this month, the US SEC sued Coinbase & BinanceUS. Against Coinbase, the US SEC alleged that Coinbase operated an unregistered national stock exchange and also provided unregistered securities offerings.
At the time, Coinbase Exchange confirmed that it will bring no changes in its services, as the company tried to follow all the possible laws to comply with all regulatory frameworks.
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