The SEC recently sued Coinbase, accusing it of selling unregistered securities. This follows the regulator repeatedly rejecting Bitcoin ETF applications, including from Ark Invest and Cathie Wood.

The SEC appears to be asserting authority over crypto through litigation rather than clear rule-making. However, recent court decisions have challenged the SEC’s ability to classify most digital assets as securities.

Stifling Innovation and Consumer Choice

This aggressive approach risks stifling innovation in emerging technologies like blockchain. It deprives consumers of access to new crypto financial products pending legal clarity.

Cryptocurrencies do not neatly fit existing regulations designed before their invention. Reasonable new rules require good faith efforts between regulators and lawmakers, not unilateral decrees.

Time For Forward-Looking Policies

Attempting to force new innovations into outdated boxes typically fails. Policymakers should consider more forward-looking crypto oversight that balances consumer protection with enabling progress.

Crypto has great potential to expand financial access and inclusion. Heavy-handed regulation could force innovators overseas and leave America behind. The ideals underlying permissionless innovation endure regardless of legal wrangling.

Thank you for reading “Advocacy Groups: SEC Lawsuit Against Coinbase Exceeds Authority“

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