Coinbase has disputed the most recent U.S. Securities and Exchange Commission's (SEC) extended exchange definition. In the SEC's new clarification, securities exchange would include Centralized Exchanges (CEXs) like Coinbase and Decentralized Exchanges (DEXs).
In a nutshell, the expanded exchange definition seeks to bring DEXs under the same regulations as CEXs. Coinbase does not envisage the decision as ideal. Hence, it argued that it could negatively impact DEX finance in the U.S.
Coinbase’s CLO Wade’s in on SEC’s Expanded Exchange Definition
In a series of posts on X, Paul Grewal, the exchange's Chief Legal Officer (CLO), expressed dissatisfaction with the expanded exchange definition. According to him, it stemmed from illogical conclusions.
“The SEC's proposal lacks critical analysis, rests on irrational assumptions, fails to show any problem in need of regulation, and vastly overstates the proposal's purported benefits. At the very least, it should be withdrawn and rewritten,” said Grewal in the post.
In addition, the CLO argued that the SEC's latest proposal would significantly hamper DEXs' advancements, especially the ongoing innovations in the thriving community. He added that the U.S. regulator did not do prior economic analyses of the proposal's implications but proceeded with its irrational conclusions.
SEC Chairman Risks Sack if Trump Emerges as President
Meanwhile, this is one in a long line of disagreement between the U.S. regulator and parties like Coinbase. Notably, leading payment platforms like Binance, Ripple, etc, are all seeking means to clarify disputes with the SEC. The SEC chairman, Gary Gensler, has remained unyielding since assuming the role as the commission’s chairman in April 2021.
Because of his many policies that have hindered cryptocurrency advancement and adoption in the United States, many market participants envisaged him as an anti-crypto advocate. Consequently, Donald Trump, one of the U.S. leading presidential candidates, vowed to sack the chairman if re-elected. According to Trump, cryptocurrencies remain a mainstay of the U.S. economy. Therefore, a pro-crypto-worthy fellow should serve as the SEC head.