In a recent lawsuit, Coinbase urged not to consider encrypted currencies as safe because it is difficult to determine the identities of the limbs, and there are no obligations between the buyer and the seller.
Queen Piece Confirm It is very important for the encrypted currency industry to determine whether secondary market transactions should be classified as encrypted as investment contracts under the stock regulations.
Coinbase Vs SEC: A decisive battle for the encrypted currency community
The legal battle between Coinbase and the Securities and Exchange Authority (SEC) attracted the attention of the financial scene and the cryptocurrency community. During the reign of former President to combat encrypted currencies, Gary Ginsner, the Securities and Exchange Commission attacked the two largest in -coercive currencies, Coinbase and Binance.
In the lawsuit, the Securities and Stock Exchange Commission accused Coinbase of violating US security laws by not registering its operations as a stock exchange, a broker or a clearing agency.
To defend its operations, Coinbase submitted a counter -seam to the Federal Appeals Court in the second circle to determine whether the transactions of the coded currency on its platform fall under the Securities Law as investment contracts.
In a similar battle, the southern region of New York issued a decisive judgment clarifying the regulatory status of XRP. The court ruled that the XRP currency itself is not a securities by its nature, which provided a great relief for retailers. The legal victory formed a precedent for other encrypted currencies.
With the ruling of the Federal Appeal Court, the encrypted currency sector will be affected mainly. If encrypted currency trading is classified as non -securities, this may achieve organizational clarity. This may also strengthen market confidence in the upward trend in the encrypted currency market.
On the other hand, the decision in the Coinbase case may lead to the authorities to put tougher regulations for the encrypted currency sector, which may resist innovation and market growth. However, in light of the management of the pro -encrypted president, Donald Trump’s new management, the encrypted currency community expects friendly currency currencies policies.
Also read: Ripple vs. Sec
