Coinbase (NASDAQ:COIN) CEO Brian Armstrong and Chief Legal Officer Paul Grewal have expressed optimism regarding the dismissal of the lawsuit lodged against their company by the Securities & Exchange Commission (SEC). The SEC has accused Coinbase of violating federal securities laws by operating as an unregistered broker exchange and clearing agency.
In an interview with Yahoo Finance on Friday, Armstrong voiced his concerns about Gary Gensler's role as SEC Chair. He suggested that the dispute could potentially be resolved if a different individual occupied the position, possibly in 2024.
Armstrong also highlighted the lack of regulatory clarity in the crypto industry, mentioning potential avenues for achieving such clarity, including through courts and congress, as well as the Commodity Futures Trading Commission (CFTC). He further speculated on a possible change in the SEC chairmanship in 2024, which he said would "certainly help" the industry. Armstrong believes that cryptocurrency could become a significant issue in the 2024 presidential race, with American voters keen to hear candidates' positions on the matter.
The Coinbase executives have been critical of the SEC's "regulation by enforcement" approach and Gensler's perceived hostility towards cryptocurrency. Grewal, in a tweet on Friday, criticized what he sees as unfair lawmaking, stating that "law that picks winners and losers is bad, law that picks them before the game is played is even worse." This comment was made in relation to the ongoing legal battle between Coinbase and the SEC.
Coinbase's stance is that the regulator is attempting to suppress cryptocurrency innovation in the United States. In response to this, they have called on the court to dismiss the SEC's lawsuit against them.
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