The SEC put crypto companies like Coinbase, Uniswap, and Ripple under fire and they are all dealing with the legal threats from the regulator but can they get on the same page? Let’s find out more in our latest crypto news.
When CEO of Coinbase Brian Armstrong tweeted recently that the SEC threatened to sue if the company launched its Lend high-yield product, Ripple CEO Brad Garlinghouse was quick to respond and just 90 minutes from the tweet, Garlinghouse posted a meme from the movie “Die Hard” with Bruce Willis saying “Welcome To The Party Pal” which implied that Ripple has already been in fights with teh SEC for over a year now. Mark Cuban also had a message for Armstrong, saying that he has to go to the offensive with the regulator. Cuban declined to expand his opinion but one can argue that Armstrong is already playing offense with the tweets. He accused the agency of intimidation tactics behind closed doors and concluded:
“It’s nice if you actually enforce [guidance] evenly across the industry equally.”
What happens next won’t be determined by tweets however as the flagship companies of the crypto industry are under assault and they started to fight back as they demand a fair and consistent set of rules which make it clear what is legal and what isn’t. they do have a point, however. Ripple’s battle with the SEC started over whether a sale of XRP tokens as unregistered securities offerings but why did the SEC wait so long to prosecute it? Ripple was selling XRP for eight years before the lawsuit so why the wait?
— Brad Garlinghouse (@bgarlinghouse) September 8, 2021
As for coinbase, the SEC puts crypto companies under fire and claims the exchange went out of its way to consult on how to make its proposed Lend product as secure for investors as possible, and according to Armstrong, the agency won’t talk to them. There’s also Uniswap as one of the most prominent and transparent companies in the DeFi Sector. The SEC chose it as a target of the investigation, overlooking how the lawyer Jake Chervinsky noted other “overt frauds”, pump and dump schemes and rug pulls. It’s no wonder Armstrong and others had enough and concluded that it could be better to roll the dice in court rather than to continue waiting for the SEC to provide a legal framework.