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- The Coinbase CEO emphasized the need for having clear crypto regulations in the country.
Coinbase’s CEO noted in a recent tweet that for the centralized crypto players in the U.S., it is high time they had regulatory clarity, for many reasons. Brian Armstrong, the CEO and Co-founder of the Coinbase crypto exchange, wrote in his recent tweet that he spent a day in DC meeting with congress members. He said “we need regulatory clarity in the U.S. for the centralized players in crypto for many reasons – consumer protection, national security, economic growth, etc.”
Spent the day in DC meeting with members of congress. We need regulatory clarity in the U.S. for the centralized players in crypto for many reasons – consumer protection, national security, economic growth, etc.
— Brian Armstrong (@brian_armstrong) April 20, 2023
The SEC has caused untold harm to America with its policy of… pic.twitter.com/eV13Ny66db
Armstrong also noted that the Securities and Exchange Commision (SEC) has “caused untold harm to America with its policy of regulation by enforcement.” For fixing this regulatory issue, “we will fight,” as he added.
Coinbase CEO’s Meeting with SEC
Brian Armstrong had a meeting with the SEC and said he will continue to push the efforts for “a clear rule book” for crypto regulations in the country. According to him, the U.S. can’t stay back on this crucial technology to update the financial system.
Armstrong further added that it is important for regulators to first “set the policy and then enforce it.”
Met with the SEC today. We’ll continue pushing for a clear rule book in the U.S. for crypto regs.
— Brian Armstrong (@brian_armstrong) April 21, 2023
The U.S. can’t afford to fall behind on this important technology to update the financial system.
Also important for regulators to set policy and THEN enforce it. Not start with… pic.twitter.com/EaPD7wDbSx
Additionally, Coinbase CEO referred to a recent statement by former SEC Chair, Jay Clayton. During CNBC’s Squawk Box, Clayton said “the courts are not an efficient place to resolve classification issues in securities.” He also pointed to Europe’s active efforts to incorporate crypto into its financial system, while U.S. policy works to keep crypto out of its system.
“The courts are not an efficient place to resolve classification issues in securities.” “Europe is trying to figure out how to bring crypto into the financial system, whereas the US policy is on keeping it out of the system.” says former @SECGov chairman Jay Clayton @SquawkCNBC pic.twitter.com/t2i0bCU6Hj
— William Mougayar (@wmougayar) April 21, 2023
It must be noted that on April 20th, the European Parliament endorsed the first EU rules to track crypto-asset transfers, preventing money laundering, and some common rules on supervision along with customer protection.
A recent report by Reuters states that Coinbase received a license to operate in Bermuda as a part of its global expansion. The crypto exchange has said in its recent blog post that its license from the Bermuda Monetary Authority will allow it to operate its crypto business there. As per the report by Fortune, Coinbase is also working on its plan to launch a crypto derivatives exchange in Bermuda.
Notably, crypto derivatives trading is quite a big business. As in the previous month, derivatives trading volumes on the leading crypto exchanges hit nearly $2.8 Trillion.
Moreover, as a part of its global expansion, Coinbase is also having a discussion with the financial regulators of Abu Dhabi.
The Coinbase CEO speaks about the need for clarity regarding crypto regulation. Moreover, the U.S. lawmakers Tom Emmer and Warren Davidson also criticized the SEC’s enforcement-first approach. Davidson has proposed a new law to replace the current Chair of SEC, Gary Gensler.