Stand Up: Coinbase is Set to Propose Crypto Regulations to US Officials
This might be the right time for the exchange platforms to step up against the unjust ruling of the officials regarding matters like cryptocurrency.
Coinbase, an American company that operates buying, transferring, and storing of digital currency, is expected to fight back against the US officials. Users, however, should not worry as the aforementioned platform does not want to light a bigger fire between the crypto industry and the government. Instead, Coinbase announced its plan of proposing a crypto regulatory framework to federal officials as to how to properly regulate the existing and future crypto in the market.
As we all know, Coinbase was molded as an open financial system for the world and set to be the leading global brand for helping people convert their digital currencies. For the past weeks, there have been different issues being thrown at this platform including its security and legitimacy.
In the proposal, Coinbase intends to argue specific terms with the other party and discuss how they should and should not define security within the country. Ultimately, a brave step from a leading crypto platform like Coinbase.
At the beginning of September, the Security and Exchange Commission threatened to sue Coinbase after announcing their plan on launching their own crypto lending product. According to the SEC, these violations are under the U.S Supreme Court precedents- the Howey and Reves cases- to argue that Lend appeared to violate securities laws. Securities Laws are a group of rules and regulations that govern the issuance of securities, the laws must be adhered to under the Securities Act (1933), Securities Exchange Act (1934) and the National Securities Markets Improvement Act (1996).
Despite the notice being sent to Coinbase, the platform says they are fully equipped to protect their community. It is indeed applaudable that this was not the first time that Coinbase created a specific framework to standardise how exchanges approach crypto listings and products within the United States of America.
With that, the real question comes in, is it also attainable for other countries like Russia and China? I’d love to hear your thoughts in the comment section!