Crypto Companies Clash with SEC: Tensions Rise as Regulatory Framework Suffocates Market

US crypto firms contemplate relocation amid lawsuits, while industry leaders criticize SEC's aggressive stance.

The dispute between the US authorities and crypto companies is turning into a tug-of-war over the “suffocating” operating framework in the crypto market imposed by the US Securities and Exchange Commission (SEC).

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The hard line adopted by the SEC to regulate this particular monetary industry has caused a strong reaction in the crypto lobby, which is facing lawsuits for illegalities.

The companies reiterate that they are now seriously considering moving their operations outside the US – a scenario, however, that can hardly be confirmed, considering the significant market share they hold in that country, according to CNBC.

More than 50 million Americans own cryptocurrencies, with the sector booming despite the constant ups and downs in the crypto market and the intense volatility in prices, as is typically the case with bitcoin.

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Typical is the statement from the CEO of Coinbase, the company that runs the cryptocurrency exchange platform. Brian Armstrong speaks of a “lone crusade” with “harsh actions” against some crypto companies.

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He accused the SEC chairman of having radically changed his attitude towards cryptocurrencies and the companies that produce them, far from the fervent support he had shown for the industry when he was still a professor of economics at MIT.

“The SEC is a bit extreme here… I don’t think it’s necessarily trying to regulate the industry as much as it’s maybe trying to rein it in… There’s a backlash and I think that’s not good for the US,” he said in a statement from Dubai.

In the same vein, statements from the CEO of Ripple, the well-known blockchain payment company. Brad Garlinghouse expressed regret over the harsh measures taken by the SEC in the crypto market, noting: “The difficult thing about this is that you have a country that I think has put politics over policy and that’s not a good decision if you’re trying to invest in the economy.”

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