Coinbase Confronts SEC and Plans $1B Bond Sale, Attracting Market Upgrades

By: Isha Das

Crypto exchange giant, Coinbase, is in the highlight following its highly publicized disputes with the Securities and Exchange Commission (SEC). Coinbase has criticized SEC's rejection of its rulemaking petition, even choosing to challenge the decision through a lawsuit.

The company contends that SEC's dismissal signifies both a violation of the Administrative Procedures Act and abuse of discretion. The success of Coinbase's move would necessitate the SEC to establish clear guidelines on its authority over digital assets and offer compliance guidelines for the rapidly-growing industry.

Coinbase asserts that the company did not register with the SEC as a national securities exchange as it does not provide securities on its platform. In addition, digital assets fall outside the SEC’s jurisdiction due to the undefined regulatory framework concerning securities laws' application to digital assets. Hence, it argues that SEC bears responsibility for the absence of clear rules in this regard.

In other news, Coinbase is planning a $1B bond sale intending to assist its stock investors and simultaneously making headlines in stock-related news. This move has resulted in some key market upgrades and could further solidify the firm's position in the crypto industry.