A quick note related to Coinbase:
The exchange had a positive response to the mandamus petition that requires the SEC to provide an immediate response regarding the issue the company wants resolved: the creation of an effective law for the decentralized digital asset market. Coinbase has 7 days to respond to the request, according to the court notice.
Paul Grewal, the Chief Legal Officer (CLO) of Coinbase, was the one who announced the court statement to the crypto community. Is this a turning point in the exchange's case against the regulator? Or is it just another fire that won't cause any harm to the SEC?
It's worth remembering that the exchange was recently sued by the SEC, accused of operating an illegal exchange since 2019 within U.S. territory.
Moving on to today's article topic:
Binance lawyers accuse the current chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, of offering to be a crypto consultant for the platform back in 2019.
That's right. Gary Gensler seems to have offered to work as a cryptocurrency consultant for the largest exchange of the present time, and allegedly even had direct discussions with the boss of Binance in Japan, where they had a lunch to thoroughly discuss the matter.
At the time, the current chairman of the SEC was a professor at MIT and, interestingly, was also a supporter of Blockchain technology. On various occasions, he taught students about the ecosystem and even made comments such as "most cryptocurrencies are commodities, not securities." But for some reason, the good Gary Gensler disappeared, and now we have the "bad guy" who is going after all the exchanges he believes have violated the law.
According to CNBC, the lawyers claim that Professor Gary had the desire to work as a collaborator for Binance in 2019 and wanted to be a key player as an advisor for the multinational company. However, it seems that this desire was never fulfilled because he was never hired.
Now, the lawyers will use this desire of the current SEC chairman as one of the reasons for the Securities and Exchange Commission to go after them and accuse the company of violating securities laws within U.S. territory.
As they say, there's no smoke without fire, and it seems that Gary Gensler has gotten himself involved in yet another controversy. Honestly, we've never seen a public servant of the SEC with so many stories like the current chairman. He has had a negative impact on the industry with his crackdown policy, leading exchanges like Bittrex US to close their doors in the United States.
Today, he is going after Binance and Coinbase, and his name is all over the media, but not in a positive way, rather a negative one. It's worth recalling that Gary Gensler was appointed by President Biden in 2021, and since then, he has sworn to make the market bleed if it doesn't comply with the law, a law that doesn't yet exist, but the agency proclaims to the four winds that it does and that crypto ventures must obey.
If that law existed, how could the court order the SEC to respond to Coinbase's mandamus petition? Therefore, Gary and his colleagues have a lot to say, and besides not being transparent now, they have a problem in their hands to solve with the accusation from Binance's lawyers. But as we know, there is always a way to circumvent the situation from the regulator's side.
One thing is certain: Gary Gensler will fall in the end. He is the talk of the town and has even raised questions before the Senate, but he never manages to give a clear answer. For example, in 2021, during one of those hearings, he stated that the current law of the Securities and Exchange Commission does not allow them to go after cryptocurrency exchanges without the approval of Congress. The funny thing is that this week he didn't need to consult the Senate for that.
Well, maybe he got the green light from Biden or has a free hand to crack down, who knows? And what do you think of the new topic brought by Binance's lawyers? Will the allegation stick in court and be a strong weapon for Binance's case, accused of breaking several securities laws? Leave your comment below, and together we will decipher this enigma.
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