Crypto Community Criticizes SEC Enforcement Actions
The U. S. Securities and Exchange Commission’s (SEC) recent lawsuits against Coinbase and Binance have drawn criticism from the crypto industry which views the enforcement actions as heavy-handed regulation.
Senator Cynthia Lummis (R-WY) has called out the SEC for failing to provide a path for digital asset exchanges to register and for not offering adequate legal guidance on regulatory frameworks for differentiating a security from a commodity.
Chief legal officer at Coinbase, Paul Grewal, added that a lack of clear rules and regulations for crypto has led technology innovators to search for better frameworks overseas. He cited several countries, including the UK, Australia, and the EU, which are putting in place regulatory frameworks that create innovation opportunities while still protecting consumers. This presents concerns for the US as it risks losing ground in a critical technological domain and market.
Regulatory Advancements in Other Countries
Grewal noted that, with more than 20 percent of Americans owning and using digital assets, there is a need for a regulatory framework that will protect consumers as well as enable the critical uses of new technology to continue and grow.
The SEC has maintained that it is willing to help digital asset brokers and exchanges get regulated, but Coinbase CEO Brian Armstrong and Grewal argue that no path to registration or clear rule book has been provided that would allow them to list securities.
Congress Holds Hearing to Discuss the Future of Crypto
The US House of Representatives will hold a hearing entitled “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem” on June 13 at 2 pm EST. The hearing seeks to discuss the future of the cryptocurrency industry and provide greater clarity for the digital asset ecosystem.
