Crypto Community on Edge: Coinbase CEO Predicts Legal Battle at Supreme Court

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The recent Gary Gensler hearing favored the crypto market, and four U.S. lawmakers pressed Gary to greenlight spot Bitcoin ETFs without delay. Congress wrote on Tuesday that the SEC might approve its first Bitcoin ETF without valid reasons. Bitcoin was passed as a non-security asset. However, Gary Gensler kept his ruling reserved for other assets and litigations. 

Gary Gensler’s testimony was full of lies on crypto assets, and delays in forming clear laws are a strategy and political action. Giving it straight to Gensler, Coinbase CEO said that if digital asset legislation fails, the crypto industry is bound to appeal to the US Supreme Court.

A Delayed Crypto Bill and Prolonged Lawsuits Both Killing Crypto

Armstrong’s frustration is valid as the U.S. lawmaker’s approach is regressive and hampering the crypto business. They cannot operate business with the SEC’s hawkish stance. 

Coinbase is in a scoop of lawsuits with the SEC, with allegations of unregistered exchange, broker, and clearing agency. However, Armstrong noted that the exchange had filed a petition seeking regulatory clarity last year and had taken the SEC to court in April 2023 to seek answers regarding its July 2022 petition concerning the agency’s plans for formal rulemaking to guide the crypto industry. He is clear that the SEC cannot continue to suppress the crypto industry, emphasizing that this is a critical moment for the U.S. Congress to address the crypto industry’s regulatory needs. He also criticized the UK’s ban on crypto payment, calling it unethical. 

CEO says the last resort is the Supreme Court.

Meanwhile, House Republicans are advocating for the “Financial Innovation and Technology for the 21st Century Act” for a regulatory framework in the crypto space.

What will happen to small traders who cannot fight the SEC in court? It may stop new money from entering the system. All big crypto CTOs like Ripple and Binance aim to leave the US for less regulation. Asian countries are the top pick as individuals are fed up with crooked banking institutions. Turkey may be the next crypto powerhouse, according to Binance. SEC reacting? 

Industry Unites for Crypto Bills?

A million-dollar question for crypto fans. At a hearing, SEC Chair Gary Gensler said the crypto industry is plagued by fraud, manipulation, and scams. Crypto industry leaders, including Coinbase, feel the SEC is becoming more hostile. Ripple’s CEO said they need lawmakers’ support to pass crypto-friendly laws.

Meanwhile, concerns have arisen that a potential U.S. government shutdown could further delay the progress of crypto-related bills. SEC Chair Gensler mentioned that if a spending agreement isn’t reached by September 30, a significant portion of the SEC staff might face furloughs, impacting regulatory efforts. With rumors of Spot Bitcoin getting a go-ahead, the market may expect a breakout rally by mid-October.