IMPORTANT POINTS:
- Coinbase criticizes the approach “Regulation only upon request” the SEC.
- Gary Gensler of the SEC admits that there is no regulatory framework for crypto exchanges.
- Coinbase calls for legislative action to protect crypto innovation in the US.
Renowned cryptocurrency exchange platform Coinbase has raised concerns about the US Securities and Exchange Commission (SEC) guidelines. Through a recent entry on its blog, the company points out that the tactics of “Regulation only upon request” that the SEC implements the North American country.
According to Coinbase, while major global economic powers are using crypto technology to expand their economic opportunities, the SEC’s current approach is costing the United States valuable jobs and pushing economic opportunities overseas.
This regulatory stance, Coinbase argues, is being implemented despite SEC Chairman Gary Gensler telling the U.S. House of Representatives Financial Services Committee in 2021 that cryptocurrency exchange platforms do not have a defined regulatory framework. neither under the SEC nor under the US Commodity Futures Trading Commission (CFTC).
The SEC’s current approach, based solely on regulation enforcement, is prevailing even though a large majority of Americans, 9 in 10, believe that an update to the financial system is necessary to make it fairer. In addition, it is important to mention that around 52 million people in the country, i.e. one in five citizens, already own cryptocurrencies.
Coinbase also emphasized that the SEC has received several court rulings against it, such as the Grayscale case, where it was found that the commission acted properly “arbitrary and without basis.”
According to Coinbase, the solution lies in legislative intervention. Despite the SEC’s restrictive approach, the US Congress is making efforts to pass comprehensive legislation for the crypto space. These efforts are essential to ensure that the United States does not fall behind other jurisdictions in crypto matters.
Coinbase emphasizes that addressing crypto regulations from a legislative perspective is essential to both protect the consumer and ensure that innovation and employment in the digital assets sector is maintained in the country.
