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The ongoing Coinbase sec lawsuit against the U.S. Securities and Exchange Commission (SEC) took a new turn this week as Cardano founder Charles Hoskinson weighed in with biting criticism. In a post on X (formerly Twitter), Hoskinson mocked the SEC’s long-standing directive for crypto firms to “just come in and register,” a phrase repeatedly used by former Chair Gary Gensler.
The Coinbase sec lawsuit alleges that the SEC destroyed internal memos that could have supported Coinbase’s defense, a claim raised by Paul Grewal, the company’s Chief Legal Officer. Coinbase is now seeking expedited discovery, sanctions, and the release of remaining documents.
“It’s the height of hypocrisy for the SEC to fine companies for poor record-keeping while it allegedly violates those same standards,” Hoskinson wrote. “I’m sure Gary can come in and register.”
The Coinbase sec lawsuit underscores a long-running dispute over whether digital asset exchanges should fall under securities law. While Gensler consistently argued that existing rules are sufficient, crypto leaders say the SEC has failed to provide clear guidance.
“The problem is not that firms refuse to register,” Hoskinson said in his remarks. “It’s that the SEC doesn’t have a transparent process for them to do so.”
Paul Grewal echoed this sentiment in a legal filing, noting that Coinbase is not resisting compliance but demanding clarity. “The Coinbase sec lawsuit is about fairness and due process,” Grewal stated. “Regulators should not destroy evidence while demanding accountability from everyone else.”
The Coinbase sec lawsuit is only one of several legal battles facing the exchange. Earlier this year, Coinbase filed a suit against the Federal Deposit Insurance Corporation (FDIC), accusing the agency of pressuring banks to cut off services to crypto firms. The company is also challenging the state of Oregon’s attempt to enforce independent crypto regulations, arguing that only federal laws should apply.
Coinbase says these cases collectively aim to create a more consistent framework for the industry.
“Every action we take is designed to bring regulatory clarity to the U.S. crypto sector,” Grewal told reporters. “The Coinbase sec lawsuit is part of that broader mission.”
The Coinbase sec lawsuit could set a precedent for how federal regulators interact with crypto exchanges. If the court rules that the ⁸ mishandled evidence, it could weaken the regulator’s credibility in future enforcement actions. For crypto firms, the case represents more than just Coinbase’s defense—it could shape the rules of engagement for the entire industry.
“The outcome of the Coinbase sec lawsuit will influence how innovation and compliance are balanced in the U.S.,” said Sheila Warren, CEO of the Crypto Council for Innovation. “A fair and transparent process benefits not only companies but also investors and regulators.”
For now, Coinbase remains defiant, positioning itself as both a defendant and an advocate for clarity. As Hoskinson’s remarks highlight, the Coinbase sec lawsuit has become a flashpoint in the larger debate over regulation, transparency, and the future of digital assets.
