For a very long time, it was unclear whether cryptos currencies should be treated as commodities or securities. And everyone knows the position of the Securities and Exchange Commission (SEC) on this. The SEC often says that most cryptocurrencies are actually securities, and has been in a legal battle with Ripple for more than two years because of the company’s claims that Ripple’s XRP currency is a security. If the SEC wins this action against Ripple, it could spell disaster for the cryptocurrency industry.
Coinbase Plans to Resist SEC’s Crypto Crackdown
Fox Business’ Charles Gasparino reported that Coinbase revealed to Fox that the company has plans to resist regulatory measures in digital assets by the SEC. This process involves using brokers to trade cryptos currencies that are registered as securities. In May 2022, Coinbase revealed that it had submitted a shelf registration statement to the SEC. This shelf registration statement is reserved for use in connection with anticipated future offerings, such as the issuance of new securities for general corporate purposes. At the time, Coinbase said:
While we do not intend to issue any securities immediately, with the current pending registration filing, we will be able to issue and sell securities in the future if we choose to do so. “
In a similar development, Coinbase recently reached out to the New York Department of Financial Services regarding a lawsuit filed against the company. As part of the settlement, Coinbase will pay a $50 million fine and spend another $50 million on compliance. Officials say the company’s activities are fueling a long-running financial crisis.
Should Cryptos Be Considered a Security?
If the records have problems with XRP and XRP controlled storage, then the Crycoin Crytoin may be required to differ. For many years, the tendency to criticize Cryptos Crypo Cour Gary Generler, the company has chosen and examined for the lawlessness of the wicked in the United States. Gensler wants crypto exchanges to be registered as national security exchanges.
The Commodity Futures Trading Commission (CFTC) and the SEC are increasingly at loggerheads over a key issue: should digital assets like cryptocurrency be classified as commodities or securities?
When led by its current chairman, the SEC is not a cryptos-friendly organization; therefore, classifying these assets as securities in accordance with the law will damage the struggling company.
When it comes to evaluating whether something is safe or not, Gensler believes that other measures, such as the Howey test, must be applied to virtual currencies. Let’s hope that Ripple will win this case.