Coinbase Sues The SEC: What Could This Legal Battle Mean For Coins Like Dogetti?
Coinbase, a leading cryptocurrency exchange, filed a lawsuit against the Securities and Exchange Commission (SEC) requesting that the regulator be compelled to make public its response to a petition submitted several months ago regarding whether the SEC would allow the crypto industry to be regulated under its existing frameworks. What does this mean for coins like Dogetti (DETI) and the wider crypto market?
Why Is The SEC Being Sued By Coinbase?
The petition, created in July 2022, requested the SEC to create and adopt rules that would allow to govern the regulation of securities that are traded through digitally native methods, which was in reference to cryptos.
While the SEC has yet to publicly respond to Coinbase’s petition, it has recently stepped up its enforcement actions and warnings against crypto exchanges, including Coinbase.
Coinbase’s chief legal officer, Paul Grewal claimed that the action filed by Coinbase was simply to ask that the SEC share its decision on the petition regarding regulatory clarity.
Law Case Marks A Developing Hostility Between U.S. Regulators And Crypto World
Since January, the SEC has taken action against several crypto exchanges, including Bittrex and Gemini, as well as a number of individuals accused of manipulating crypto assets, such as crypto entrepreneur Justin Sun and disgraced Terraform Labs founder Do Kwon.
This lawsuit marks Coinbase’s first formal move against the SEC, following a warning from the regulator just over a month ago through a Wells notice. In the blog post, Grewal emphasised the need for regulatory clarity, believing that it was overdue for the crypto industry. Grewal pointed out that Coinbase and other crypto companies were being penalised with potential regulatory enforcement actions from the SEC despite not being told how the SEC believes the law would apply to the crypto sector.
This showcases the growing unease both within the crypto community and U.S. regulators about the compatibility of crypto business in the United States. This latest chapter simply marks another hazardous conflict to navigate before a mutually satisfying compromise is reached.
What Could This Mean For A Crypto Like Dogetti
For a new crypto like Dogetti there may be concerns as to what regulatory clarity could mean. But the reality is that this is actually a good thing as it would then establish clear lines and allow Dogetti and its team to understand how it could pursue investment opportunities within the U.S. without breaching federal regulations.
This is vital for Dogetti as it is a new meme coin stepping into the live market in June 2023 after a successful presale. As a community-owned crypto project, one that asserts the importance of its members through memes and hilarious organised crime family tropes, it’s vital that it maintains the trust of its community. To sustain this, it also needs to understand what the regulatory framework it is operating under looks like, as investors are unlikely to put their money in something that could be sued by the SEC in the future.
For more information about Dogetti (DETI):
Presale: https://dogetti.io/how-to-buy
Website: https://dogetti.io/
Telegram: https://t.me/Dogetti
Twitter: https://twitter.com/_Dogetti_