The SEC accuses Coinbase of providing unregistered securities and failing to fulfill its disclosure obligations. Coinbase advocates that cryptocurrency trading on its platform does not constitute securities and seeks clarification on whether secondary market trading meets the definition of investment contracts under securities laws. The regulation of encryption will only become increasingly strict, and even in democratic rule of law countries where the government does not approve of "innovation", there is no one size fits all solution. It is also a long-term game. China is very simple, leaders say everything they want.