• The US SEC issued a Wells Notice to Coinbase for allegedly selling unregistered securities on its exchange.
• Brett Quick from the Crypto Council for Innovation sees potential in the warning, as it could lead to more defined rules for the crypto industry.
• There is a risk that crypto companies may move outside of the US due to lack of regulatory clarity.
SEC Warning Gives ‚Silver Lining‘ For Crypto Industry
The U.S. Securities and Exchange Commission (SEC) has recently issued crypto exchange Coinbase a Wells notice, warning that they may face enforcement action over potential violations of U.S. securities law. Brett Quick, Head of Government Affairs at Crypto Council for Innovation, believes this may be beneficial in terms of providing clearer regulations for the future of digital-asset firms.
Potential Clarity Of Regulations
Quick believes that while there is a chance that crypto companies may simply move outside the U.S., there is an opportunity here to provide clarity regarding regulations within the crypto industry; “The silver lining, to the extent there is one of this type of development, is that it will force the establishment of case law that will inform how crypto is regulated and it will set some rules of the road for crypto to comply with,“ she said in an interview with CoinDesk TV’s “First Mover” program on Thursday .
In response to receiving this notice from the SEC, Coinbase released a blog post stating they have met with their regulators numerous times and are committed to continuing dialogue and engagement as they work towards compliance with applicable laws and regulations; “We take our obligations seriously and have invested heavily in both technology and compliance capabilities over our decade long history.“
Risk Of Companies Moving Abroad
Despite Quick’s optimism surrounding this event, she also acknowledges there is still some risk involved if companies decide not operate under any set regulations; „There are other jurisdictions around the world that are looking at ways to embrace the technology, to embrace the innovation and the developers that are working on it and they’re establishing regulatory clarity,“ she said in her interview with CoinDesk TV’s ‘First Mover‘.
Crypto Industry On The Cusp Of Change
Overall, this recent incident involving Coinbase marks what could be potentially groundbreaking change within not only cryptocurrency exchanges but also many associated industries; With careful consideration from both sides we can expect further developments soon which could help shape what kind of regulations are implemented across all aspects related to cryptocurrency trading.