US Securities and Exchange Commission (SEC) Chairman Gary Gensler will testify before the US Senate Banking Committee tomorrow. Ahead of this critical hearing, leading cryptocurrency exchange Coinbase criticized the SEC and its chairman.
Coinbase warns lawmakers about SEC!
SEC Chairman Gary Gensler will testify before the US Senate Banking Committee tomorrow at 17:00 ET. Before this speech by Gensler, crypto exchange Coinbase criticized the SEC’s regulation with a sanctions-only approach. The Senate Banking, Housing and Urban Affairs Committee will hold a full committee hearing on U.S. SEC oversight on Tuesday, September 12, 2023.
The crypto exchange is warning that the only way to avoid risking job loss in the industry is for the SEC to take an urgent regulatory approach to end excessive pressure. It says the regulatory uncertainty of the enforcement approach alone puts 4 million jobs at risk by 2030. In its statement, Coinbase notes that regulation through the app puts the US at risk of losing 1 million developer jobs and 3 million related non-technical jobs over the next 7 years as web 3.0 development shifts offshore. In this context, the exchange notes the following:
A legal approach to creating crypto regulation is the best way to ensure consumer protection and also ensure that digital asset innovation and the businesses it creates stay in the US.
cryptokoin.comAs you follow from , Coinbase also fell victim to the SEC’s anti-crypto sanctions. In June 2023, the SEC accused the exchange of operating as an unregistered broker, exchange and clearing house.
Will the Ripple case decision be brought up during the hearing?
It remains to be seen whether lawmakers will bring up the US SEC’s recent loss in the XRP case. However, expectations are that the most likely agenda will be the Ripple case. Additionally, Gensler is likely to receive questions about spot Bitcoin ETF applications from financial giants like Blackrock, Ark Invest, Fidelity, and others. Because the SEC postponed its decisions regarding spot Bitcoin ETF applications. This triggered a sell-off in the market and led to backlash against the SEC. The warnings of the Coinbase exchange come amidst these developments.
Here, Judge Analisa Torres ruled that Ripple’s sale of tokens to individual buyers was not a securities transaction. Previously, the SEC moved to further support the provisional appeal in the Ripple case. Accordingly, he submitted a legal memorandum to the court in response to the appeal. Following the Senate hearing, Gensler is scheduled to speak at a virtual conversation event at the Lehman Collapse 15th Anniversary Conference.
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