• The SEC issued a Wells Notice to Coinbase for allegedly selling unregistered securities on its exchange and through its staking service.
• Brett Quick from the Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms.
• Coinbase has been meeting with the SEC in an effort to create reasonable crypto rules, but there are still hurdles in the way of establishing regulatory clarity in the US.
SEC Issues Warning to Coinbase
The U.S. Securities and Exchange Commission’s (SEC) issued a Wells Notice to crypto exchange Coinbase, alleging that they have been selling unregistered securities on their exchange and through their staking service. This warning serves as a reminder of how difficult it can be for crypto companies to operate within existing framework in America, but also demonstrates an effort from both sides to create reasonable regulations for this new industry.
Crypto Advocate Sees ‘Silver Lining’
Brett Quick from the Crypto Council for Innovation said that this warning could lead to clearer rules for digital asset firms, although it could mean that some companies may move outside of America in order to find a more friendly regulatory environment. He believes that this kind of enforcement action will ultimately help establish case law which will provide better guidance around how crypto should be regulated going forward.
Coinbase Seeks Reasonable Crypto Rules
Coinbase has actively been trying to work with the SEC over the past nine months, holding more than 30 meetings with them in order to come up with reasonable rules surrounding cryptocurrency products and services. It isn’t just about disclosure requirements or hefty fees associated registering these products, it is about finding ways make existing securities laws compatible with technological innovations like blockchain and cryptocurrency technology.
Regulatory Clarity is Vital
It is essential that regulatory clarity is established if America wants maintain its innovative edge when it comes to cryptocurrency technology – especially when other countries are embracing innovation and providing clear guidelines on how developers should adhere to regulations without sacrificing progress.
Conclusion
While there are currently many barriers standing between cryptocurrency companies and operating within US borders, both parties (the SEC & Coinbase) are making strides towards creating a set of fair regulations which will benefit everyone involved – especially those looking innovate using this technology!