Coinbase – one of the largest and most powerful cryptocurrency exchanges in the world – is not happy with the Securities and Exchange Commission (SEC), Assuming that the agency did not do so Implemented effective cryptographic regulations. The company has now filed a petition criticizing the organization and calling for fair regulation within the legal scope of America.
Coinbase is not too happy with the SEC
In a recent statement, Faryar Sherzad, Coinbase’s chief policy officer, explained that the United States is lagging behind when it comes to regulating cryptocurrencies. He stated that many countries in Europe, for example, are starting to see official crypto laws being implemented that will eventually help space become more legitimate and universal on the continent.
He says that if the United States does not come together and fails to implement proper crypto-based laws soon, the nation will fall behind and no longer be a major financial competitor. He indicated:
When it comes to cryptocurrency securities, there is a major fundamental obstacle that has prevented this market from maturing. This obstacle lies in the fact that securities rules simply do not work with native digital tools… Crypto-assets that are securities need an updated rulebook to help guide safe and effective practices. Crypto assets that are not securities need the certainty of being outside those rules. Anything less than that will have the effect of anchoring existing technologies at the expense of innovation, and thus consumers.
In the petition, Paul Grewal, Coinbase’s chief legal officer, explained that many of the existing laws regarding the use of crypto and blockchain are terribly unclear. This has led to many problems for traders with organizations such as the Internal Revenue Service (IRS) and financial agencies through which cash reports are required.
He also mentioned that the space is tainted with unnecessary requirements. In the document, he lists many of the questions he hopes the SEC will answer, many of which relate to potential regulatory frameworks, issuance and custody issues, trading, and asset ratings.
Despite all the controversy surrounding Coinbase lately, the . file It seems that the company has It rose slightly in terms of its share price. The company’s stock is closely correlated with the price of Bitcoin, which has rebounded somewhat in recent weeks. The world’s number one digital currency by market capitalization traded for nearly $25,000 not too long ago, giving Coinbase stock a small boost that investors could sink into.
Too much growth?
Recently, CEO Brian Armstrong warned that the company had grown too quickly, commenting:
It looks like we are entering a recession after 10 years of economic boom. The stagnation could lead to another crypto winter and could go on for a long time. While it is difficult to predict the economy or the markets, we always plan for the worst so that we can conduct business through any environment.
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