Not all participants in the cryptocurrency industry in the US have accepted the lack of any prospects in their own development in this market. As it became known yesterday, Coinbase has filed a lawsuit against the SEC. It turns out that the platform sent a formal request to the SEC back in the summer of 2022, asking it to clarify certain issues regarding the regulation of cryptocurrencies and at the same time create a new legislative framework for digital assets.

The regulator responded with the so-called Wells Notice, a document that indicates the end of the investigation and hints at a lawsuit imminent. However, on the substance of the appeal, SEC officials have not responded in nine months.

Now Coinbase wants to force the regulator to respond to its request. And the SEC does have to do so in accordance with the law.

What’s going on with cryptocurrencies in the world

Palihapitiya blames what’s happening with crypto in the US specifically on SEC Chairman Gary Gensler. Here’s one of his quotes on the matter.

Cryptocurrencies in the US are dead. Gensler has now put the blame for the banking crisis on the digital asset industry – everyone has turned against cryptocurrencies.

That said, the expert stresses that Bitcoin and altcoins are an inherently unique phenomenon, as they have pushed the boundaries of innovation in the US more than any major tech startup. According to the billionaire, this can partly explain the strange behaviour of regulators towards digital assets.

According to Cointelegraph's sources, Palihapitiya also did not ignore the bankruptcy of cryptocurrency exchange FTX in his discussion. Due to the collapse of Sam Bankman-Fried's "crypto empire" in November 2022, the cryptocurrency industry received a serious blow to its reputation. As a result, other major cryptocurrency companies are now "paying the price" for what happened to FTX.

One of the show’s hosts, David Sachs, noted that the US is trying to suppress cryptocurrencies because they could weaken the dominance of the US dollar. Here’s his quote on what’s going on.

I think it’s hardly a coincidence – all this concern about de-dollarisation at the same time that regulators are suppressing cryptocurrencies.

The Commission’s motives are really hard to understand, as the pressure on cryptocurrencies only limits the development of innovation in the US. That said, crypto has not threatened the dollar in any way so far, as its acceptance does not even come close to comparing it to the main reserve currency on a global scale.

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The opposite situation regarding the regulation of digital assets is occurring in the EU, where the Comprehensive Cryptocurrency Regulation Act (MiCA) bill was passed a few days ago. Unlike the US, Europe is taking steps to promote innovation in digital assets. One of the main benefits of MiCA is the ability for cryptocurrency companies to be licensed in one European Union country, after which the document will be valid throughout the EU.

As a result, startups registered in France will now soon have to obtain all necessary licences under the MiCA standard, the local financial regulator insists. The French Financial Markets Authority (AMF) has welcomed the MiCA approval and also published a teaser of how crypto projects will be regulated in France during the transition period over the next 18 months.

The main focus of the AMF will be to guide the transition to MiCA regulation for French digital asset service providers (PSANs). The agency said that the regulator is currently considering “fast-track transition” options for these companies so that they can comply with MiCA as soon as possible.

In France, cryptocurrencies have two licensing options: “simple”, which offers relaxed requirements, and a stricter “enhanced” option favoured by the government, which is presumably already closely aligned with MiCA rules. The stricter option provides for strict controls on anti-money laundering rules, custody of client assets, reporting to regulators and providing details of risks and conflicts of interest to protect consumers.


We believe that the current regulatory environment for the cryptocurrency industry in the US is indeed negative, but it is too early to declare it dead. Still, as recent events have shown, the digital asset industry is ready to fight for its future, including by using the courts for this purpose. And since the recent Gary Gensler hearings clearly demonstrated his incompetence, the court verdict could easily turn out to be positive for the crypto world. If that is the case, it would be a turning point for the development of the field within the US.


Look for even more interesting things in our cryptochat of ex-rich people. There we will discuss other important developments related to the blockchain and decentralised assets industry.