Coinbase, the largest cryptocurrency exchange in the USA, has made a new attempt to appeal the case against the Securities and Exchange Commission (SEC) by citing the vote of American lawmakers in the FIT21 (Financial Technology and Innovation for the 21st Century Act).
On May 24, Coinbase filed a motion seeking to appeal the court ruling in its case against the SEC. The exchange highlighted recent developments in the cryptocurrency industry in the US Congress as important factors in its appeal.
In its appeal, Coinbase emphasized the division between American legislators and the SEC regarding jurisdiction for the cryptocurrency industry. It pointed out that lawmakers’ disagreement with the SEC’s position has deepened, with the US House of Representatives passing digital asset legislation that would limit the SEC’s jurisdiction.
It’s worth noting that Gary Gensler, the president of the SEC, has expressed concerns about the FIT21 Law, citing potential regulatory gaps and risks for investors and markets. While the Biden administration opposes the bill’s approval, the White House does not plan to veto it, indicating a divergence in the US government’s stance on cryptocurrency regulation. FIT21 was approved by the Chamber on May 22 with a vote of 279 to 136.
The FIT21 bill proposes significant changes to the current regulatory regime for digital assets, which could either facilitate their integration or impose barriers to their development. The cryptocurrency industry sees FIT21 as crucial for the sustainability and expansion of the digital asset market in the country.
Currently, oversight of digital currencies in the US is divided between the SEC and the Commodity Futures Trading Commission (CFTC). FIT21 suggests consolidating this oversight under the CFTC to establish clearer rules for the industry. The bill also includes consumer protection measures and specific protocols for managing assets in cases of bankruptcy.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and should not be construed as financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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