Coinbase Legal Battle with SEC: Implications for the Approval of Spot Bitcoin ETFs 

The post Coinbase Legal Battle with SEC: Implications for the Approval of Spot Bitcoin ETFs  appeared first on Coinpedia Fintech News

As the crypto industry eagerly awaits the potential approval of the spot Bitcoin ETF, a major development has gone unnoticed, and that is Coinbase’s ongoing legal drama with the SEC. If the SEC gives the green light for the spot Bitcoin ETF, Coinbase will play a pivotal role by providing trading and custody services to the known major financial institutions. However, this legal battle has been going on for a long time, and the SEC has accused Coinbase of operating as an unregistered exchange, broker, and clearing agency.

The Ongoing Legal Battle

Coinbase’s legal battle with the SEC began over a year ago when the regulator accused the exchange of operating as an unregistered exchange, broker, and clearing agency. Coinbase has refuted these claims and called for new digital asset regulation. The SEC Chair Gary Gensler yesterday again emphasized that crypto exchanges must register with his agency and provide investors with the same level of protection as traditional regulated exchanges and he also cautioned investors to invest in exchanges that are working under regulatory rules.

Implications for Spot Bitcoin ETF Approval

If the SEC approves a spot bitcoin ETF, Coinbase would play a crucial role by providing trading and custody services to major financial institutions such as BlackRock, Franklin Templeton, and Grayscale Investments. However, some experts believe that Coinbase’s ongoing legal battle with the SEC could complicate matters if the SEC wins its case against Coinbase. This could particularly affect Coinbase’s custodial function.