According to a recent blog post by a cryptocurrency exchange, the US Securities and Exchange Commission’s (SEC) regulatory approach is negatively affecting America. Here are more details about all this.
SEC’s regulatory approach
The post expresses concern that while other countries are taking advantage of the economic benefits of cryptocurrency, the SEC’s enforcement-only strategy is resulting in the loss of millions of jobs and driving opportunities away.
Despite the SEC Chair’s testimony that domestic crypto exchanges lack regulation, the exchange argues that the SEC persists in its enforcement-only approach.
Says Coinbase,
“The enforcement-only approach continues despite 9 in 10 Americans believing it’s time to update a financial system so as to make it more fair and where progress is being slowed down by the status quo.
This enforcement-only approach continues despite 52 million people – or 1 in 5 Americans – owning crypto.”
The notes continued and stated the following:
“This enforcement-only approach continues despite courts having ruled against the SEC in a number of high-profile instances, including the Grayscale case where the court found that the SEC acted in an ‘arbitrary and capricious’ manner.”
Coinbase suggests that a legislative approach is the most effective way to progress with cryptocurrency.
Congress has initiated action to implement comprehensive crypto legislation, in response to the Securities and Exchange Commission’s enforcement-focused strategy.
This is essential to avoid falling behind other regions.
By embracing a legislative approach, consumer protection can be guaranteed, while also preserving digital asset innovation and the employment opportunities it generates within the United States.
Coinbase CEO addresses the need for crypto regulation
During an interview with CNBC, Brian Armstrong discussed the lack of clear guidelines for the digital assets industry in the United States.
He stressed the importance of regulatory rules to avoid negative consequences like the collapse or relocation of cryptocurrency firms and the US losing its position as a global financial hub.
Armstrong believes that the digital assets industry is expanding quickly and needs proper regulation to guarantee its growth and stability.
Check out the previous article in order to learn more details.
