Cryptocurrency

From the XRP lawsuit to crypto regulations: Coinbase CEO speaks his mind

In a current episode of the “All-In” podcast, Coinbase CEO, Brian Armstrong, gave his opinion on points associated to the irregularity round the cryptocurrency regulatory panorama, his ideas on how viewing cryptocurrency as one huge ocean is outright incorrect, and his method of shifting ahead with the regulatory our bodies in the future.

The curious case of readability

When requested about the present state of affairs with regards to the SEC’s stance on cryptocurrencies, Armstrong acknowledged,

“It’s actually better for there to be lack of clarity than to be clarity that is punitive or bad.”

He additional went on to state {that a} lack of readability is healthier than having readability that curtails the progress of any trade. He additionally identified that the SEC contemplating all cryptocurrencies as securities, as in the SEC vs. Ripple lawsuit is wrong.

Same similar however totally different?

The Coinbase CEO jumped at the concern of how taking a look at each cryptocurrency underneath the similar microscopic lens wouldn’t make sense. He additional went on to state that some cryptocurrencies, akin to Bitcoin and Ethereum, possibly commodities, whereas some could also be securities, and a few currencies, akin to stablecoins, might fall in the class of currencies.

“Crypto is going to be many different things, it’s not going to be one regulator doing it”, he asserted.

Further, he additionally acknowledged that commodities, securities, and currencies can’t be regulated by the similar governing physique and will need to have totally different laws and regulatory our bodies, akin to the SEC, and the Commodities Futures Trading Commission (CFDC), or the Treasury. He additionally talked about that some cryptocurrencies could not even fall underneath any of those classes, thus exempting them from being regulated.

However, the SEC has repeatedly questioned the nature of cryptocurrencies. The dissent filed by Commissioner Hester Pierce, statements made by Gary Gensler on the regulation of cryptocurrencies, together with the ongoing Ripple lawsuit present the SEC’s standing on the cryptocurrency panorama.

Does the Howey Test stand the check of time?

Emphasizing the want for higher insurance policies round cryptocurrencies, Armstrong acknowledged,

“Every startup has had to hire a bunch of expensive lawyers to go tease apart these old, old rules that were created in the 1930s.”

To add to that, he additional touched upon the concern of how a brand new check wants to be constructed preserving in mind the Howey Test. He factors out the want to embrace a set of definitions that clearly define the boundaries between securities, currencies, commodities, and extra. The Coinbase CEO additional laid out his plans to work with different cryptocurrency organizations and regulatory our bodies to provide you with a brand new framework in the future.

Striking the proper steadiness

Touching upon the concern of bringing some sense of equity to the market, Armstrong acknowledged that the crypto government order was a transfer in the proper route with the U.S authorities recognizing the true potential of innovation in the crypto area.

The CEO additional went on to state, “What would be better is to have clarity that does provide that right balance of good customer protection, make sure there’s a fair level playing field, and allows innovation to flourish.”

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