Coinbase Rejects SEC Oversight, Calls for New Regulator

【Japan Himalaya League】 Author: 海星  Translator: Ranting

Coinbase, the largest U.S. cryptocurrency exchange, plans to ask Congress to block the Securities and Exchange Commission (SEC) from overseeing the digital asset industry and to create a new regulator, a filing released by the Wall Street Journal reported Oct. 14.

At a congressional hearing last week, SEC Chairman Gary Gensler reportedly said that if Congress were to carve something out of the securities laws, it could undermine 90 years of economic gains and harm more than 7,000 issuers. Coinbase, on the other hand, said in a planned release that digital assets should have a designated regulator rather than face the threat of regulation by multiple agencies such as the SEC or the Commodity Futures Trading Commission.

The paper notes that a single regulator would eliminate the need for cryptocurrency companies to deal with oversight from numerous federal and state government agencies at the same time, and that they would also have to regulate themselves.

(Picture Source: Internet.)

In its filing, Coinbase writes that the laws drafted by the SEC in the 1930s to effectively oversee financial markets are no longer able to regulate the ongoing digital technology revolution. It stresses that Congress should legally recognize that all digital assets, including digitally native versions of traditional financial assets, should be subject to a new regulatory regime.

In September, Coinbase CEO Brian Armstrong tweeted that the SEC was threatening legal action against the company’s cryptocurrency lending program, but that the program was not regulated by it. He said that such actions by the SEC amount to intimidation behind closed doors.

Coinbase said the SEC would not clarify why the program is eligible for regulation.

Post Script: This article only represents the view of the author.

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Posted by: Ranting

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Jay
Jay
1 month ago

The CCP lackeys trying to reign in alternative systems for storing and exchanging assets electronically would be alarmed if they realized Bitcoin was just a proof-of-concept, and that their actions will accelerate development of asset exchange mechanisms which could not be detected or controlled even if you know they are there. Coinbase is doing them a favor.