Coinbase requires the establishment of dedicated crypto regulators

Coinbase has called for a single volunteer body to oversee digital content, saying that current monitoring is highly fragmented and that US security regulations a century ago are not appropriate today. money markets.

In a memorandum of understanding with Congress, a major exchange in US cryptocurrency encouraged lawmakers to separate control of the electronic stock market and other financial markets, as it continues to Capitol Hill follow recent saliva and the Securities and Exchange Commission.

“In order to avoid inconsistent and inconsistent segregation of these new and similar products, digital market responsibility should be handed over to a single regulator,” said Coinbase, noting that the SEC, Commodity Futures Trading Commission and other government agencies oversee all segments of crypto companies.

The company also called for an independent agency, or SRO, to help oversee the management of the new electronic, financial market management system.

Thoughts come as arguments in the middle Coinbase and the SEC has grown in recent months. Gary Gensler, chairman of the SEC, said in September that Coinbase had not yet registered with the regulator “even though it has a lot of tokens that can be secure”, a form the company disputes.

Chief Executive Brian Armstrong also in September challenged the directors The “ugly” and handsome man has threatened to sue the company if it can raise his own mortgage rates, which would have paid interest on the rates only, without registering with the supervisor. Coinbase later thwarted the plans.

In a statement Thursday, Coinbase said security regulations enacted in the 1930s are trying to adapt to digital markets, and as a result, this threatens to establish and run crypto businesses at sea. The document, reviewed by the Financial Times, was the first reports published by The Wall Street Journal.

While Gensler has said many crypto items can be described as secure, he has stopped providing further guidance, saying the existing rules are clear. In recent months he has promoted crypto platforms contact the SEC and discuss whether he should register with the agency.

The regulatory debate revolves around other aspects such as digital products and “financial agreements”, which is why they are considered security under state laws. Based on what is known as Howey’s trial, the Supreme Court has ruled that a profit agreement exists “when a person sells his money to a similar business and expects to make a profit only from a third party advertiser or a third party”.

“While the Howey test has an important role to play in defining security, the use of digital resources has led to success SEC to be ambiguous and uncoordinated, “says Coinbase.

The company also said that the confidentiality of electronic media means that disclosure of what is contained in security regulations is not appropriate.

“Anyone with a digital fortune can evaluate the performance and management of the economy,” it said. “The use of disclosure by a state-owned company could mislead people into learning more about digital assets.”

The SEC did not immediately respond to a request for comment.

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