Kelvin Testimony Amachree
Leading cryptocurrency exchange Coinbase has criticized the US Securities and Exchange Commission (SEC) for its efforts to hinder the growth of the crypto industry. The company is pushing for a fresh regulatory structure from the SEC to support the digital asset sector. In its recent submission, Coinbase argued that the SEC’s emphasis on enforcement measures is impeding America’s economic competitiveness and stifling innovation in the field.
In a bid to promote responsible industry development in the US, Coinbase urged the SEC last month to establish new regulations. However, the SEC has accused Coinbase of operating without proper registration as a national securities exchange, broker, and clearing agency. Additionally, the agency has alleged that Coinbase failed to register its crypto asset staking-as-a-service program. Coinbase asserted that US-based digital asset companies are caught in a regulatory dilemma and is advocating for clear guidelines and backing from a fresh regulatory framework.
This dispute underscores the prevailing regulatory uncertainty in the digital asset domain. Coinbase seeks a more cooperative stance with the SEC, whereas the agency is taking a stricter enforcement path. The resolution of this conflict could have significant implications for the future of the crypto industry in the US.
Coinbase Raises Concerns Over SEC’s Actions
Over the past year, regulating digital assets in the US has sparked controversy, with the SEC receiving backlash for its enforcement-driven tactic. Despite demands for transparent directives, the SEC continues to take legal action against crypto entities, including Coinbase, which accuses the agency of aiming to dismantle the sector.
In a recent statement, Coinbase alleged that the SEC is setting unattainable compliance standards for firms, only to prosecute them for falling short of those criteria. This, according to Coinbase, is a deliberate effort to hinder industry growth. The exchange hinted that the SEC’s actions might be steered by a desire to influence policy changes, especially after approving spot Ethereum ETFs recently.
The topic of cryptocurrency regulation is poised to be pivotal in the upcoming 2024 elections, with both Donald Trump and Joe Biden voicing support for the asset category. Initiatives like the FIT21 crypto bill strive to establish clearer regulations for the sector. Yet, Coinbase’s reservations about the SEC’s approach shed light on the persistent challenges in this arena.