Ex @SECgov member for Enforcement / Legal Affairs TuongVy Lee comments on the Coinbase lawsuit

Let’s be clear: the @SECGov complaint doesn’t mention this, but there is currently NO way for a platform like @coinbase to register as a securities exchange, broker, or clearing agent. That’s why they’ve been begging @SECGov for YEARS to give them a path to compliance.

Instead of working constructively with U.S. market participants to come up with a working model, and knowing that Congress is actively considering legislation to do the same, SEC sues. No allegations of fraud, just accusing @coinbase of failing to do the impossible.

This is why regulation-by-enforcement hurts investors & creates chaos and confusion in the markets - the opposite of the SEC’s mandate. What’s more, SEC approved Coinbase to sell its shares to the public - meaning not just crypto investors but Coinbase shareholders will be hurt.

https://twitter.com/TuongvyLe12/status/1666078394738515968?t=Kx-S6F9QPXexmyaYuaxFxw&s=19