Coinbase: SEC’s Enforcement-Only Approach is Hurting America
Crypto exchange Coinbase argues that the US Securities and Exchange Commission’s (SEC) enforcement-only strategy is having a negative impact on the country. In a recent blog post, Coinbase states that while many global economic powers are embracing technology that can boost economic opportunities, the SEC’s approach is causing the loss of millions of jobs and driving opportunities abroad.
SEC’s Enforcement-Only Approach Despite Lack of Regulatory Framework
Coinbase highlights that the SEC continues to pursue an enforcement-only approach, despite its chair Gary Gensler acknowledging in May 2021 that there is no regulatory framework for domestic crypto exchanges at the SEC or its sister agency, the US Commodity Futures Trading Commission (CFTC).
The enforcement-only approach persists despite widespread support for updating the financial system and a significant number of Americans owning cryptocurrencies.
Legislative Approach: The Best Way Forward
Coinbase believes that a legislative approach is the most effective way to address crypto regulation. While the SEC focuses on enforcement, Congress is taking steps towards comprehensive crypto legislation. Coinbase emphasizes that this legislative approach is crucial for consumer protection, as well as ensuring that digital asset innovation and associated job opportunities remain within the United States.
Hot Take: Coinbase Calls for Regulatory Clarity to Support American Crypto Industry
Coinbase warns that the SEC’s enforcement-only approach is detrimental to America’s economy. By pushing opportunities offshore and stifling job growth in the crypto sector, the US risks falling behind other jurisdictions. Coinbase advocates for a legislative approach to create clear regulations that protect consumers while fostering innovation and preserving jobs within the country.
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