Coinbase Provides Legal and Political Aid to Fight the SEC

Coinbase, the largest crypto exchange in the US, has taken a notable step in relation to the US Securities and Exchange Commission’s charge on securities law violations.

Coinbase Appoints a Global Advisory Council to Battle With the SEC. The council comprises of heavy hitters from both political and legal fields.

Coinbase Gets a Heavyweight on Its Council

coinbase crypto exchange announced Launch of a new Global Advisory Council with members from some former US lawmakers.

According to the announcement, the council will offer insights and trading strategies to the exchange.

The advisory council includes political heavyweights such as former Congressman Tim Ryan (D-OH) and former Senator Patrick Toomey (R-PA).

In addition, the council includes former Congressman Sean Patrick Maloney (D-NY), John Anzalone from Impact Research, and Chris Lehane from Hone Ventures.

The Council will work closely with Coinbase Asset Management Academics and members of the Regulatory Advisory Council.

Similarly, the Coinbase body includes prominent figures such as former SEC Chairman Jay Clayton and former CIA General Counsel Courtney Ellwood.

The others are Senior Managing Director of Compass Lexcon John Orszag and Kevin Hassett of the Hoover Institution.

Coinbase noted that creating an advisory council is a step in the right direction for the company. This will help the exchange maintain a flawless operating process while rebuilding its strategies in the US and globally.

Coinbase is currently in a legal tussle with the SEC. Therefore, induction of a new council is part of its initial strategies.

Coinbase prepares to battle the SEC

Notably, the US SEC has toughened its regulatory stance in the crypto industry and is now closely monitoring most crypto-related firms.

In one of its enforcement actions, the SEC issued a wells notice In March, Coinbase warned the company of a possible lawsuit over alleged securities violations.

Responding to the notice, Coinbase CEO Brian Armstrong said the regulator is focusing its charges on staking and asset listings. He reminded that the SEC had reviewed the exchange’s operations and approved its license in the past.

Armstrong said he has requested an appropriate explanation from the SEC. According to the CEO, the firm intends to use the answer to create rules to maintain the correct regulatory requirements for crypto assets. However, the SEC did not respond to the exchange’s request.

In addition, Paul Grewal, Chief Legal Officer of Coinbaseexpressed Disappointment at the SEC’s preference for constructive dialogue lawsuits.

He added that despite all his efforts to work with the SEC, the regulator did not respond to him. Grewal added that Coinbase will defend the rule of law if the SEC launches a legal battle.

– Featured Image: Pexels, Chart: TradingView