Coinbase Files Petition With SEC Requesting Fair Crypto Regulation
Coinbase, one of the world’s largest and most powerful digital currency markets, is displeased well with Securities and Exchange (SEC), stating that the body has not established effective crypto laws. Coinbase is one of the world’s largest and most powerful digital currency marketplaces. The corporation has now submitted a petition that criticizes the agency and calls for equitable regulation across the American legal continuum.
Coinbase is dissatisfied with the SEC
In a recent speech, Coinbase’s chief policy officer, Faryar Shirzad, emphasized that the United States is falling behind in terms of crypto governance. As an example, he noted that many nations in Europe were attempting to enact proper crypto laws, which will actually help the sector become more legal and mainstream on the continent.
He asserts that if the United States does not get its act together and make effective crypto-based regulations soon, it will fall behind and cease to be a significant financial contender. He indicated:
There is a huge, underlying barrier that has kept the crypto securities market from maturing. This obstacle is the fact that securities regulations do not apply to digitally native instruments… A revised rulebook is required for crypto assets that are securities in order to ensure safe and efficient procedures. Crypto assets that are not securities require the assurance of being exempt from these regulations. Anything less will result in the entrenchment of existing technology at the expense of innovation and, ultimately, customers.
Paul Grewal, the chief legal officer of Coinbase, noted in the petition that many of the current regulations governing the usage of cryptocurrencies and blockchain technology are extremely murky. This has resulted in numerous issues for investors with entities such as the Internal Revenue Service (IRS) and banking authorities that need financial reporting.
In addition, he argued that the area was disfigured by superfluous regulations. In the document, he outlined a number of questions he hopes the SEC can address, the majority of which concern prospective regulatory frameworks, issuance and custody issues, trading, and asset classifications.
Despite the recent turmoil regarding Coinbase, the stock price looks to have increased somewhat. The company’s stock is highly dependent on the price of bitcoin, which has rebounded in recent weeks. The leading digital currency by market capitalization was shopping for roughly $25,000 not too long ago, giving Coinbase’s stock a little bump that shareholders could savor.
Too Much Expansion?
Recently, CEO Brian Armstrong expressed concern that the company has expanded too rapidly, stating:
After a decade-plus-long economic expansion, a depression is imminent. Another crypto cold weather might be precipitated by a depression and endure for a longer period of time. Although it is difficult to foresee the economy or the markets, we always prepare for the worse so that we can function our firm in any scenario.