The CEO of the Coinbase exchange platform, Brain Armstrong, has expressed his opinions on the latest “Well notice” that was issued by the SEC. Brian said on a Twitter space that the SEC’s actions are endangering the development of the US financial systems and technology.
Specifically, Brian said the SEC is the “real outlier” amongst other regulators regarding crypto opposition, and risks putting the US financial systems behind. He highlighted that the US is the farthest behind in terms of enacting crypto legislation compared to countries like the UK, Singapore, Brazil, and the EU.
Additionally, he said working with regulators in the US has been quite difficult as there are no clear rules guiding the industry. He also hinted that the SEC has not given Coinbase any feedback regarding areas that need to be improved upon. However, his firm is willing to go to court if that is what it takes to develop some case law in the crypto industry.
Notably, Brian’s comments came only a day after the SEC issued a warning to the exchange regarding the legality of some digital assets on its platform. In particular, the regulator wants to know whether Coinbase Earn, Coinbase Wallet, Coinbase Prime, and certain other unnamed components of its listed digital assets are legitimate.
The Need for a Clear Crypto Regulatory Framework
The lack of a consistent regulatory framework can have several negative impacts. It can create confusion and uncertainty for businesses, investors, and consumers, leading to market inefficiencies and reduced economic growth.
It can also result in regulatory arbitrage, where firms seek to take advantage of gaps or differences in regulations across jurisdictions. Against this background, the Australian government has announced plans to set up a regulatory crypto framework this year. The framework will be expected to oversee all activities of digital asset providers.
Consequently, part of the framework will address licensing, establishing custody, regulating digital assets, and determining which digital assets fall under financial services laws
Likewise, the Central African Republic (CAR) has recently formed a committee to develop its crypto-legal framework.
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