• The U.S. Securities and Exchange Commission (SEC) has issued crypto exchange Coinbase a Wells notice, warning that it may face enforcement action over potential violations of U.S. securities law.
• Brett Quick from the Crypto Council for Innovation sees the upshot as clearer rules for digital-asset firms.
• The silver lining is that this will set some rules of the road for crypto to comply with, according to Quick.
SEC Warns Coinbase Over Potential Securities Law Violations
The U.S. Securities and Exchange Commission (SEC) has issued crypto exchange Coinbase a Wells notice, warning that it may face enforcement action over potential violations of U.S. securities law. According to SEC’s announcement, Coinbase allegedly sold unregistered securities on its exchange and through its staking service which could be in violation of US law if proven true by SEC’s investigation into the matter.
Crypto Advocate Sees ‘Silver Lining’
Brett Quick from the Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms in terms of cryptocurrency regulations in the US market and beyond.
Clarity on Regulation Could Benefit Crypto Companies
Quick believes that this development will help pave way for more defined rules regarding cryptocurrencies, benefiting companies within this sector.
Enforcement Action Could Lead To Crypto Moving Outside US
However, there is a danger that crypto companies may simply move outside the US due other jurisdictions looking into ways to embrace cryptocurrency technology and innovation.
“Silver Lining” May Help Establish Case Law For Cryptocurrencies
Coinbase said it has met with SEC several times since 2019 to discuss its operations, products and services; in spite of such efforts, Quick sees an upside – establishment of case law which can inform how cryptocurrencies are regulated going forward; thus setting ‘rules of the road’ for them to comply with accordingly .