Coinbase’s CEO has again urged American regulators to make clear its stance on crypto and amend current policies.
Failing to do so, could see innovation occur elsewhere.
“It's important for American technology leadership and national security that this industry be built (at least in part) in America,” said Brian Armstrong, sharing a recent op-ed piece further detailing his position.
Failing to reel in crypto rules stateside, Armstrong argued that other countries, notably mainland China, could take the lead. "China aims to directly challenge the U.S. dollar and its role in global commerce,” he wrote, adding that building a portion of the industry in America is a matter of national security.
'SEC Has No Intention' of Providing Clear Rules for Crypto: Coinbase
Coinbase accused the U.S. Securities and Exchange Commission (SEC) of deliberately ignoring its petition for adopting clear rules for the crypto industry, even though the decision has not been made public. In its latest filing to the Third Circuit of the U.S. Court of Appeals, Coinbase also pointed to public comments previously made by SEC Chair Gary Gensler, saying that "the SEC’s and its Chair’s words and actions leave no doubt of the agency’s plans." Coinbase sent the SEC its so-called “petit...
He specifically mentioned seven other global financial powerhouses including the U.K., United Arab Emirates, Brazil, Japan, the European Union, Australia, and Singapore that are "vying to become crypto hubs."
The crypto exchange has long been in a battle with the Securities and Exchange Commission after the regulator issued Coinbase with a Wells Notice earlier this year.
According to reports at that time, the SEC was expected to take action against the firm over its staking services. Kraken, another U.S.-based crypto exchange, was also hit with a $30 million fine for its staking service, forcing the crypto exchange to shutter the offering to its American clientele.
Other crypto businesses have expressed similar concerns, including Ripple CEO Brad Garlinghouse, who recently said that "confusing" regulations in the U.S. will push the industry off-shore.
Coinbase Asks Court to Force SEC to Clarify Crypto Regulations
Cryptocurrency exchange Coinbase took action against the Securities and Exchange Commission (SEC) late Monday, asking a federal court to compel the agency to respond to its demand for clearer crypto regulations. The exchange sent the SEC its so-called “petition for rulemaking” last July, and asked the regulator to propose and adopt rules for digital assets securities. It also sought answers to 50 specific questions that would provide “clarity and certainty regarding the regulatory treatment of d...
Like Garlinghouse, Armstrong also highlighted the need for regulatory clarity in the U.S.
He added that Coinbase has regularly asked policymakers and regulators for "regulatory clarity needed to ensure consumer protection and realize the promise of crypto."
Crypto regulations abroad
While the U.S. continues to hammer out its rule book, crypto regulations are already getting put in place abroad.
Europe, for example, has just ushered in its latest crypto rulebook called Markets in Crypto Assets (MiCA). Though it’s far from comprehensive, it’s already earned nods of approval for providing clear guidelines for crypto firms.
Hong Kong, UAE Central Banks Coordinate on Crypto Regulations
The central banks of Hong Kong and the United Arab Emirates have announced plans to strengthen their financial cooperation—and work together on regulating virtual assets. A bilateral meeting was held in Abu Dhabi, with financial infrastructure and cross-border trade settlements also on the agenda. Last month, the UAE's Securities and Commodities Authority began allowing crypto firms to apply for operating licenses—and Hex Trust, a crypto custodian based in Hong Kong, was one of the first to rece...
SEC Commissioner Hester Peirce said MiCA could even serve as a “model” for regulations in the U.S.
In Hong Kong, authorities are also expected to allow retail investment from June 1, with some experts suggesting “that Beijing wants to use the territory as a testing ground" for a wider reopening in mainland China.
