The head of Coinbase predicted the division of supervision over the crypto industry between departmentsTia Price
SEC will not fully regulate the cryptocurrency industry as not all digital assets meet the definition of securities. This was stated by Coinbase CEO Brian Armstrong.
“Obviously Bitcoin or Ethereum are commodities and should probably be regulated. CFTC. If the team wants to raise funds for the company through security tokens, these are securities and the prerogative of the SEC. It would be great to clarify this issue, Armstrong noted.
According to the top manager, stablecoins should be the responsibility of the US Department of the Treasury. There are art-based cryptocurrencies that do not fit into any of the above categories and probably should not be subject to oversight, he added.
The CEO of Coinbase stressed that regulation requires a balance between protecting investors and keeping innovation open.
“We don’t want the government to be in a position where it chooses winners and losers. Simply because what is legal does not look like a good investment. We all want to get rid of fraud and are ready to work with the government […] But there could be a danger that only wealthy people who meet the criteria for accredited investors can end up investing.”Armstrong explained.
The top manager also did not rule out that the imbalance could lead to the displacement of projects with breakthrough innovations. At first, they may not live up to expectations, so the government will never allocate funds to them.
On March 9, US President Joe Biden signed decree on the coordination of federal agencies in the regulation of cryptocurrencies.
At the end of March, Senators Cynthia Lummis and Kirsten Gillibrand revealed the details of the bill, designed to provide clarity on the regulation of cryptocurrencies. Among other things, the document clarifies the definition of a broker in terms of infrastructure and provides for the creation of a specialized supervisory agency.