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- The SEC has dropped its case against Coinbase Inc. and Coinbase Global Inc.
- A new Crypto Task Force aims to create clear regulations.
- The decision does not impact other crypto-related cases.
In a major shift in attitude, the U.S. Securities and Exchange Commission (SEC) finally dropped its legal battle in court with Coinbase Inc. and Coinbase Global Inc. A Court document confirmed the dismissal, a reversal in agency stance. The move is just a short while after the Crypto Task Force came online, tasked with designing a structured regime for regulation.
SEC had charged Coinbase for security law violation. The lawsuit had raised questions about how cryptocurrencies fit in today’s financial regulations. The agency is now considering another avenue and is open to cooperation in formulating improved regulations instead of filing lawsuits.
SEC Shifts Toward Clearer Crypto Rules
SEC Chairman Mark Uyeda stressed open dialogue between regulators and industry players. He acknowledged previous steps taken for enforcement had mainly relied on lawsuits without involving industry players or members of the general public in decision-making processes.
Such inactivity created confusion and uncertainty in the crypto space. The Crypto Task Force, formed in recent times, is aimed at bridging this gap and creating a forum for open discussion. Its primary goal is to formulate guidelines for regulators in a way that balances investor security and industry development. Better and more harmonized policies are also expected to be favorable for regulators and crypto businesses in equal measure.
Although it dropped the suit, the SEC hasn’t commented on the validity of its allegations. The move does not state if or when Coinbase could have violated security statutes. The move is more indicative of a shift in wider agency thinking.
The focus is now on regular regulations and not individual cases settled by enforcement alone. It is reflective of the SEC shift towards adapting to the constantly evolving crypto space without neglecting market surveillance.
What’s Next for Crypto?
SEC explained that this shift does not change its crypto-enforcement stance. The Cyber and Emerging Technologies unit will continue to be looking for blockchain-based scams and compliance abuses, and other ongoing lawsuits and investigations will proceed as planned.
For crypto, this could be a watershed moment. The sector and investors may be given stricter guidelines in the imminent future, reducing market uncertainty. The Crypto Task Force will shape the future of digital currency in the next few months.
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