With Coinbase seemingly on the brink of a court battle with the United States Securities and Exchange Commission (SEC), the firm has emphasized that the US government’s hardline approach towards crypto regulation has ” left a void that other countries are eager to fill.”
The SEC issued Coinbase a Wells notice on March 22 describing how SEC staff had recommended the agency take enforcement action for “potential violations of securities laws” in connection with some of the firm’s asset listings, staking services, and Coinbase Wallet.
In a blog post of March 23 entitled “Europe is winning. Will the US catch up?” Daniel Seifert, Coinbase’s vice president and regional managing director in Europe, stressed that the “US regulatory approach to cryptocurrencies has been marked by regulation through control measures,” despite industry-wide calls for “comprehensive cryptocurrency regulation.”
“This approach has created an environment of uncertainty and instability in the crypto industry,” he wrote.
Coinbase’s top lawyer @iampaulgrewal says the SEC wants court fights instead of conversation.
In dozens of meetings with the SEC over the last 9 months, Grewal says the exchange was “given essentially no response” to key questions.
Listen: https://t.co/027slXaMhb pic.twitter.com/L0ikJwleyA
— Laura Shin (@laurashin) March 24, 2023
In this sense, Seifert argued that the United States is losing its status as the center of the cryptocurrency sector, while France, the United Kingdom and the European Union are building “living” ecosystems due to their more favorable approach towards the regulation of cryptocurrencies. .
“The US has left a void that other countries are eager to fill,” he wrote, adding: “We are proudly an American company. It’s hard to sit idly by and watch the US waste the opportunity it’s been given.” .
The SEC misses one of the biggest frauds in history – FTX/Alameda
Gary Gensler cozies up to the head of that fraud – SBF
And then the SEC goes after the most legitimate company in crypto – Coinbase
Yes yes very normal and totally rational
— sassal.eth (@sassal0x) March 23, 2023
In particular, Seifert highlighted the importance of the Paris Blockchain Week, held this month at the Louvre. He also referred to recent UK push to become a cryptocurrency center and to regulations Markets in Crypto-Assets (MiCA) of the European Union, which will enter into force in 2024.
“This year it is held in a private space at the Louvre, arguably France’s greatest national treasure and one of the most respected museums in the world,” said, adding:
“This is a clear sign to me: France is quick to recognize the opportunity that cryptocurrency represents and is offering it room to flourish. The broader EU, UK, UAE, Hong Kong, Singapore, Australia and Japan are following suit. “.
MICA legislation has been developing for two yearsand its goal is to establish a “harmonized set of rules for crypto assets and related activities and services.”
In general, hopefully it will be a positive step for the European cryptocurrency ecosystem, as it will provide clear standards and guidelines for the sector.
“We are already seeing Europe now equal the US in its share of cryptocurrency developers (29% each globally). The US used to lead the race with 40%,” he said, adding that:
“This level of growth does not happen by chance. Concerted efforts need to be made, such as developing a regulatory framework that brings clarity and stability to companies operating in this space.”
In a lengthy Twitter thread on March 23, the Crypto Council for Innovation also made points similar to Seifert’s, commenting that “Cryptocurrency is global, and no one is waiting for the US to land the plane.”
1/ Crypto is global, and nobody is waiting around for the US to land the plane. Here, our roundup of global activity():
— Crypto Council for Innovation (@crypto_council) March 24, 2023
The thread explored positive developments globally, including examples such as the National Australia Bank work with stablecoins not pegged to the US dollarHong Kong’s efforts to become a hub of digital assetsand the Securities Administration of Canada, which recently imposed “enhanced investor protection commitments” on national cryptocurrency exchanges.
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