Regulation authorities and enforcers like the SEC still face challenges of limited budgets in discharging their functions, especially concerning the regulation of crypto space. The SEC is struggling with financial difficulties, as Bill Morgan, a crypto lawyer mentioned in the post on X, stated that the main problem is that the SEC’s funding does not meet the chairperson’s demand. However, this shortfall is made worse by allocating resources to meet Coinbase and Ripple’s documentary requirements instead of pursuing settlements.
Also Read: SEC Faces Budget Cuts Amid Fiscal Strains and High-Stakes Crypto Litigations
Coinbase’s Extensive Document Request
In a statement to reporters, Coinbase’s Chief Legal Officer, Paul Grewal, outlined the importance of the documents requested from the SEC. In Grewal’s view, these documents have yet to be released, but they are likely to present confusion in the decisions of the SEC concerning digital assets and its jurisdictions. In his call for the SEC to enhance its transparency, he responded that if the SEC wants to continue regulating through enforcement, it has a duty to offer transparency to those it targets and the public.
Following the declaration of its plans to list more cryptocurrencies, Coinbase asked the SEC to reveal all the records concerning crypto assets. As a result, the SEC has provided more than 240,000 non-exempt documents that it obtained as a part of the examination of the crypto exchange. Grewal referred to these documents as giving insight into the SEC’s stance and conduct during the case.
Advertisement
Ripple’s Call for Document Disclosure
Following this, on July 23, Ripple also filed a motion requesting the court order the SEC to provide information on the tokens mentioned in the securities regulator’s lawsuit against Ripple. That’s why Ripple’s request reflects the need for more transparency and clarity concerning the position of the SEC as a regulator.
Furthermore, Coinbase has sought records concerning the SEC’s examination of the digital currency platform’s filing to list with the public and comments made by Gary Gensler, chair of the SEC. These requests seek to reveal more about how the SEC handles its internal affairs and public policies regarding crypto assets.
Conclusion
The SEC’s efforts to meet these extensive document requests highlight the strain on its limited resources. As the agency balances its budget constraints with the demands for transparency and regulatory enforcement, the crypto industry and the public await further clarity on the SEC’s approach to digital assets. The ongoing legal battles with Coinbase and Ripple underscore the broader challenges the SEC faces in regulating the rapidly evolving crypto landscape.
Also Read: Ripple CTO Elaborates on the Scams on Social Media Affecting Coinbase Users
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.