Key Takeaways:
- Coinbase has issued a third letter urging the SEC to retract its proposed changes to the definition of a national securities exchange, arguing that the SEC lacks sufficient data for a proper cost-benefit analysis.
- Coinbase’s Chief Legal Officer, Paul Grewal, highlighted that the proposal is based on insufficient information, particularly around the term “crypto asset security.”
- The proposal has faced widespread criticism from the crypto industry, including opposition from the Blockchain Association and Uniswap, due to its legal and practical challenges.
Coinbase has strongly criticized the U.S. Securities and Exchange Commission (SEC) in a third letter, urging the agency to withdraw its proposed changes to the definition of a national securities exchange.
Coinbase argues that the SEC lacks the necessary data to conduct a valid cost-benefit analysis, which is required under the Administrative Procedure Act and the Exchange Act of 1934.
Coinbase calls for SEC to rethink rule on decentralized exchanges, calling it 'irrational' https://t.co/Snypf8IMYb
— The Block (@TheBlock__) August 12, 2024
Paul Grewal, Coinbase’s chief legal officer, emphasized that the SEC’s proposal is based on insufficient information, particularly concerning the definition of “crypto asset security.”
He also noted that both decentralized and centralized crypto exchanges would struggle to meet the new requirements.
Today @coinbase submitted another set of concerns with @SECgov over the agency’s proposal to expand the definition of “exchange.” In short, the SEC’s proposal lacks critical analysis, rests on irrational assumptions, fails to show that there is any problem in need of regulation,…
— paulgrewal.eth (@iampaulgrewal) August 12, 2024
The proposal, which has been under criticism since 2022, has faced opposition from various groups, including the Blockchain Association and Uniswap, citing concerns about its legal and practical implications for the crypto industry.
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