Coinbase Criticizes SEC’s Regulatory Approach Ahead of Gary Gensler Hearing
Crypto exchange Coinbase has voiced its criticism of the U.S. Securities and Exchange Commission’s (SEC) enforcement-based approach to regulation ahead of Gary Gensler’s hearing before the U.S. Senate Banking Committee. The exchange warned that the SEC’s enforcement-only approach is putting 4 million jobs at risk by 2030. It argued that a legislative approach to crypto regulation is necessary to protect consumers and ensure that digital asset innovation and the jobs it creates remain in the U.S. Coinbase itself has experienced the consequences of the agency’s enforcement actions when it was accused of operating as an unregistered broker, exchange, and clearing agency. It remains to be seen if the XRP lawsuit verdict will be brought up during the hearing.
XRP Lawsuit Verdict and Gensler’s Speaking Engagement
There is speculation about whether the lawmakers will discuss the recent XRP lawsuit verdict during the hearing, where Judge Analisa Torres ruled that Ripple’s sale of tokens to retail buyers does not constitute a securities transaction. Additionally, following the Senate hearing, Gary Gensler is scheduled to speak at a virtual event commemorating the 15th anniversary of the Lehman Collapse.
Hot Take: Coinbase Calls for Legislative Approach to Crypto Regulation
Coinbase’s criticism of the SEC’s enforcement-based regulatory approach highlights the importance of a legislative approach to ensure consumer protection and the preservation of digital asset innovation and jobs in the U.S. As the crypto industry continues to evolve, it is crucial for regulations to be clear and supportive, rather than hindering growth and driving opportunities overseas. By adopting a legislative approach, regulators can provide certainty and establish a framework that balances consumer protection with technological advancements. This approach will not only benefit the industry but also bolster the U.S. economy by fostering innovation, attracting investment, and creating jobs in the digital asset space.
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