According to reports, the CEO of Coinbase, Brian Armstrong, expressed dissatisfaction over the recent actions from the regulators.
The US Securities and Exchange Commission (SEC) has created massive quakes regarding crypto regulations. As a result, the crypto space has experienced strict regulatory rules and enforcement actions from the watchdog. Also, its lawsuit with Ripple XRP remained a historical battle in the industry.
With the recent collapse of the crypto exchange FTX, the US regulators have taken a more controlling stance over several other exchanges within its jurisdiction. The regulators have started an investigation round on FTX.US, Coinbase, and Binance. The US.
Coinbase CEO: US Regulators Make Unclear Regulations For Crypto Firms
Armstrong stated that the regulators are using enforcement action on US-based firms unjustly. He mentioned the new move was due to irregularities in offshore companies outside the US jurisdictions. Hence, it could be senseless for the regulators to act on such issues.
The reaction from Coinbase’s CEO was in response to the aggressive enforcement call of Senator Elizabeth Warren due to the FTX crisis. Armstrong pointed accusing fingers at the SEC’s regulatory unclarity in the US.
This has pushed over 95% of American investors (and trading activities) offshores. So for him, it makes no sense to initiate punishments for US-based companies in the name of investigations and regulations.
On his part, the CEO of Ripple, Brad Garlinghouse, gave an example of Singapore. He noted that firms operating in the US lack complete guidance on compliance steps and processes. However, the case is different in Singapore, as the country provides a clear licensing framework and tax economy. So, it’s straightforward for firms to comply.
Collapse Of FTX Spikes US Regulatory Investigation
The collapse of the FTX, the global third-largest crypto exchange, remains a surprising outturn of events. The company had millions of users from different parts of the world.
FTX’s performance in the past indicated a robust and stable firm. As a result, the exchange was not overly affected throughout the crypto winter and the following crypto contagion. It even carried out some bail-out actions for some struggling lending firms. Also, FTX has completed several funding rounds, and the last one took place in January this year.
The deal for Binance to acquire FTX lost its hold after 48 hours after the announcement. FTX token (FTT) has continued to fall following the firm’s collapse. Several reactions have erupted within and outside the crypto industry following the FTX crisis.
The US regulators have sprung up due to the ongoing crisis. A report revealed that the US Department of Justice (DoJ) and the SEC investigate the FTX US subsidiary.
The regulators are probing the exchange to determine if some FTX crypto lending products are within the securities classification. Also, they intend to uncover its ties with the parent company headquartered in the Bahamas.
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Source: https://bitcoinist.com/coinbase-ceo-says-regulations-impacted-trading/