Both Coinbase and Huobi Global Advisory Board member Justin Sun have been charged by the U.S. Securities and Exchange Commission (SEC) in recent days.
Sun responded to the allegations on social media, saying that the SEC’s allegations are baseless and that he will continue to build a decentralized financial system. Sun added that the SEC’s action against him is just the latest example of the agency’s action against a high-profile player in the blockchain and crypto industry.
The regulatory framework for digital assets is still at an early stage and needs further development, Sun said. He said he hopes to work with governments and regulators around the world to develop transparent guidelines for regulating the cryptocurrency industry, which is critical to this work.
Sun cited the example of Dominica, which will adopt TRX and BTT as legal tender, as an opportunity for collaboration and partnership.
The SEC has been taking action against several major players and institutions in the cryptocurrency market, including Gemini, Genesis, Coinbase, and Kraken. Coinbase, a popular cryptocurrency trading platform, received a Wells Notice from the SEC earlier today. (A Wells notice is an informal notice the SEC sends to companies before they file a civil lawsuit against them, giving them an opportunity to negotiate with the agency.)
Coinbase responded to the notice by calling for transparent and sound cryptocurrency regulation. CEO Brian Armstrong reiterated his commitment to working with officials and regulators around the world to create clear rules for the cryptocurrency industry.
The charges against Coinbase and Sun reflect a broader push by the SEC to establish clearer regulatory guidelines for digital assets. The agency has been grappling with how to regulate the fledgling crypto industry that has grown rapidly in recent years. Critics of the SEC’s approach argue that the agency’s current regulatory framework is unclear and stifles innovation in the industry.
Coinbase and Sun’s response to the allegations highlights the need for greater transparency and clarity in cryptocurrency regulation. As the industry continues to grow and mature, regulators around the world may need to work together to develop clear guidelines for digital assets.