Charles Hoskinson, founder of Cardano (ADA), has reacted to the new lawsuit between Coinbase and the U.S. Securities and Exchange Commission (SEC). In a post on X, Hoskinson expressed sarcasm at the requirement by the regulatory body for crypto entities to register.
Charles Hoskinson calls out SEC’s “Register” narrative
For context, former SEC Chair Gary Gensler, while in office, constantly told crypto companies to “Just come in and register.” Gensler insisted that exchanges and crypto projects need to register and comply with securities law.
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Hoskinson, referencing a post from Paul Grewal, Coinbase’s Chief Legal Officer, has called out the SEC for not following its own rules. Notably, Grewal alleged that the SEC under Gensler destroyed some internal memos that would have been useful in their legal proceedings.
According to Grewal, Coinbase is seeking expedited discovery and sanctions, as well as the production of any remaining communications that could aid their case.
As per Hoskinson, it is hypocrisy for the SEC to fine crypto firms billions of dollars for not keeping records, yet they violate the same rules. In his words, “I’m sure Gary can come in and register.”
The Cardano founder is sarcastically suggesting that since the regulatory body is violating record-keeping laws, then maybe Gensler should also come to register for accountability.
Coinbase’s multiple legal battles
Coinbase is caught in a series of legal battles and appears determined to put up a fight to defend itself.
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At the end of July, Paul Grewal had submitted a legal brief challenging the U.S. Federal Deposit Insurance Corporation (FDIC). This was to counter the FDIC’s move to dismiss Coinbase’s lawsuit, which accused the agency of trying to push crypto firms out of the financial space.
Meanwhile, in Oregon, Coinbase is also arguing that the state has no legal authority to enforce crypto regulations independent of U.S. federal laws.
Coinbase insists all its legal battles are to provide regulatory clarity to the crypto sector.
