Regulation
SEC rejects Coinbase’s plea for crypto regulation overhaul
The United States Securities and Exchange Commission (SEC) remains unresponsive to cryptocurrency exchange Coinbase’s call for an overhaul of crypto regulations. The SEC maintains that current laws are sufficient, dashing Coinbase’s hopes for regulatory clarity via specialized rules.
Coinbase says existing regulations impose impractical conditions and complicate the growth potential of cryptocurrencies. However, the SEC counters, saying these rules are essential to the integrity of the industry and the protection of investors.
Despite the SEC’s strong stance, Coinbase remains committed to advocating for a streamlined and effective regulatory environment for cryptocurrencies. This paved the way for a vigorous debate between the two entities influencing the future of digital currencies and their applicable laws.
The SEC discourages any drastic changes to the regulatory system unless exceptional situations arise, such as threats to public health or safety.
SEC Stands Firm Against Coinbase’s Regulatory Appeals
They argue that current policies strike a delicate balance between encouraging innovation and protecting consumers.
While recognizing that some aspects of the system could be optimized, the SEC cautions against rash changes without solid justification. They argue that purely economic reasons do not justify regulatory changes and emphasize that substantial evidence is needed before considering significant changes.
Paul Grewal, Coinbase’s chief legal officer, remains positive. Grewal criticizes the SEC’s “misguided belief” in the feasibility of the existing registration process and asserts that traditional mechanisms cannot keep pace with the rapidly evolving digital currency landscape.
Grewal also suggests that the lending product offered by Coinbase could stimulate competition in the financial market without compromising investor protection. He views regulatory hurdles as challenges to overcome rather than setbacks, expressing his commitment to driving disruptive change in the financial sector.
Separately, the Runes cryptocurrency has seen a drop in activity since its launch, while a victim of an “address poisoning” attack managed to recover the stolen $71 million through negotiations . Elsewhere in the industry, Nethermind is partnering with Near and Eigen Labs to push the boundaries of on-chain abstraction, signaling potentially revolutionary cross-chain operations in the future.