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One of the world’s top financial watchdog, the US Securities and Exchange Commission (SEC), seems to be on the back foot in the legal arena against virtual digital assets. The recent court filing suggests that the US SEC is seeking to dismiss the lawsuit against <a href="https://news.todayq.com/crypto-firm-debt-box-faces-sec-lawsuit-for-50-million-fraudulent-scheme/" target="_blank" rel="noopener noreferrer nofollow">crypto startup DEBT Box</a>. However, this move comes in when the commission is pressing charges on some of the biggest crypto exchanges. SEC on the back foot? 
According to the latest court filings, the commission has filed a brief indicating its intention to back its legal charges against DEBT Box. It is reported that the SEC lawyers admitted to making inaccurate statements during court proceedings. This development raised concerns about the commission’s transparency and working ethics.
The lawsuit was initially filed against Digital Licensing Inc. which is operating as DEBT Box. The US SEC alleged that the company was attempting to move assets overseas to evade regulatory oversight. However, the commission’s addressing its inaccuracies has led to a strategic withdrawal of charges. It is done in order to avoid potential sanctions from the judge for misleading the court in obtaining a restraining order and asset freeze against DEBT Box.
It is important to note that the SEC’s decision to dismiss the case “without prejudice”. This implies that the agency retains the option to refile the lawsuit in the future. The judge overseeing the case, Robert Shelby, is expected to provide commentary on this aspect. He will be shedding light on the regulatory body’s handling of the situation. What’s up with Coinbase? 
Experts suggest that the dismissal may seem like an attempt by the SEC to avoid legal repercussions. However, it does not mean the agency will escape unscathed. Judge Shelby in the case holds the authority to impose monetary sanctions on the SEC for the inaccuracies that occurred during the legal proceedings.
Amid this major fiasco, Paul Grewal, Chief Legal Officer at Coinbase, shared insights into the ongoing legal battle between Coinbase and the SEC. This is regarding Coinbase’s petition for rulemaking in June 2022, seeking clearer regulations for the cryptocurrency industry. However, the SEC rejected the request on December 15, 2023, arguing that existing securities regulations for crypto were sufficient.
He mentioned the need for a thorough examination of the SEC’s decision. The exchange would present its brief by March 11. The SEC’s latest filing, dated January 24, provides a record of documents leading up to its December decision. This includes comments from external individuals and notices of meetings with Coinbase.
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Coinbase to gain upper hand against SEC over DEBT Box Crypto fiasco

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