Crypto community reacts to SEC’s regulatory crackdown on Coinbase: insights from MetaLawMan

The crypto regulatory environment in the United States is heating up, forcing several influencers to comment on the current state of affairs. A notable influencer and analyst, MetaLawMan, has made his position known, chiming in on the current situation Coinbase, a cryptocurrency exchange, finds itself in.

Coinbase will easily win against the SEC

After the Securities and Exchange Commission (SEC) served Coinbase with a Wells Notice in March, many people expected that legal action would soon follow. However, it is now the position of MetaLaMan that if anything like this pans out, Coinbase would easily prevail over the regulator.

MetaLawMan, as he is often known, took to Twitter, explaining how SEC Chairman Gary Gensler acknowledged, in his testimony to Congress on May 6, 2021, that they are not authorized to oversee cryptocurrency trading platforms.

Accordingly, the legal analyst assessed that Gensler’s viewpoint is accurate. He added that the decision on precisely which agency regulates crypto platforms in the country depends on Congress, the law-making arm of the United States government.

Moreover, MetaLawMan is confident that the exchange will thoroughly investigate any interactions inside the agency in the run-up to Gensler’s appearance before Congress. 

The analyst is confident that before being said, every word mentioned during testimony would be thoroughly investigated by its staff and determined to be accurate.

Therefore, if the SEC proceeds with any legal action, it will inevitably find itself in a difficult position.

SEC’s enforcement actions

Despite MetaLawMan’s views, the United States SEC has taken several definite legal proceedings against trading platforms in the past few years. For example, Kraken, a crypto exchange, ended up paying $32m to settle with the agency for offering and operating an unregistered staking-as-a-service platform. 

Coinbase has filed a lawsuit against the SEC for failing to offer specific regulatory standards for the sector to avoid being entangled in the web of uncertainty that has been created.

It is founded on a different assumption about whether or not the trading platform has a legitimate case. Still, the complete interest and support of the community in the legal battle is still intact.