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Paul Grewal, Legal Chief of Exchange, says it is a victory for Coinbase and USA.
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The lawyer asks to approve legislation for the sector that provides long -term certainty.
The new administration of the United States Stock Exchange and Securities Commission (SEC) decided to dismiss the judicial case against Coinbase, as announced by the executives of the cryptocurrency exchange.
Brian Armstrong, CEO of Coinbase, reported in a video that the sec team informed them of the dismissal. The vote to formalize this decision will be carried out next week.
“This needs the approval of the SEC commissioners, but we hope it will happen next week. If it is fulfilled, it will be something big not only for us, but for the entire cryptocurrency industry, ”said Armstrong. The Executive awaits a “domino effect” that impacts other NEC litigation against companies in the sector.
Paul Grewal, Legal Chief of Coinbase, said in a post that the SEC “is correcting an important error” with this decision. “This is a victory not only for Coinbase, but also for our clients, the United States and individual freedom,” Grewal said.
The litigation between Coinbase and the SEC began in 2023, when the agency accused the Exchange of operating as an unregistered stock exchange. The SEC argued that Coinbase facilitated the sale of values without complying with federal regulations. Other companies, such as Ripple, have also faced similar legal battles against this office.
The SEC, under the administration of Gary Gensler, former banker and leader of the entity until recently, maintained a critical position towards cryptocurrencies. Grewal said that this management “acted as if it were above the law, usurping the power of Congress as established in the Constitution.”
Both Armstrong and Grewal agree on the need for clear legislation for the sector. Warned that, without defined rules, Scenarios such as the current litigation could be repeated.
Grewal deepened this idea: “To ensure that innovation continues in the United States and that a dishonest regulator cannot use the lack of clarity as a weapon, it is essential that we approve legislation that provides the long -term certainty necessary for states United leads this industry. ”
As the lawyer sees it, regulatory clarity will bring new capital entries to the US, will update the financial system for consumers to pay lower rates “and help create economic freedom for all.”
The Coinbase vs. case SEC had been generating uncertainty months. However, for days everything has been conducting a possible favorable outcome for Exchange. The SEC recently requested a 30 -day break to evaluate the demand against Coinbase.
Some experts, such as John Reed, former director of the SEC Internet compliance office, speculate that all these cases could stop or retire completely. The agency faces key dates to respond to demands. In the case of Coinbase, the deadline is March 14. For Ripple, the deadline is April 15.
The position of the previous administration of the SEC generated criticism in the sector. Many companies accused the agency to apply ambiguous regulations. Coinbase, in particular, said the existing rules They do not fit the nature of cryptocurrencies. The Exchange defended that its operations did not violate the laws of values. The legal battle included exchanges of documents and hearings that lasted for more than a year.
The pause requested by the SEC in the Coinbase case fed speculation. Some analysts believe that the agency seeks to reassess their strategy. Others suggest that the new administration could adopt a more friendly approach to the sector. Reed, with your experience in the SEC, bets on a total withdrawal of these cases. Meanwhile, The sector expects next week’s vote to confirm dismissing.