Coinbase to the Securities and Exchange Commission in the United States cryptocurrency and altcoin submitted a petition criticizing the current state of the regulation.
Faryar Shirzad, Chief Policy Officer of the famous crypto exchange, explained the reasons behind the petition in a blog post on Thursday, saying that without effective regulation, the US will be left behind in digital asset innovation.
Coinbase Representative Criticizes SEC’s Rules for Cryptocurrencies
Shirzad stated the following regarding the issue in his statement:
“When it comes to crypto securities, there is a major, fundamental hurdle preventing this market from maturing. This hurdle is that securities rules do not work correctly for digitally authentic assets.
Crypto assets as securities need an updated guide to guide safe and efficient practices.
Non-securities cryptoassets need the certainty of being outside of these rules. Anything other than what we just said harms innovation in the first place and ultimately consumers.”
In his petition, Coinbase Chief Legal Officer Paul Grewal outlined the key challenges with regulating cryptocurrencies, including the lack of clarity on which digital assets constitute securities, and conflicting or unnecessary mandates.
Grewal also highlighted issues such as classification, supply, trading, and custody among the issues the SEC should consider when creating a regulatory framework.
The SEC itself also expressed concern over the lack of regulation on cryptocurrencies. Earlier this week, the commission’s executive director, Gurbir Grewal, conveyed to Congress his desire to expand the SEC’s Crypto Assets and Cyber Unit.
That same day, Gensler raised concerns about the lack of compliance of the last companies facing bankruptcy.
*Not investment advice.