In SEC’s warning to Coinbase, crypto advocate sees ‘silver lining’ for industry

In SEC’s warning to Coinbase, crypto advocate sees ‘silver lining’ for industry

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  • March 23, 2023
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A clearer set of rules for digital-asset firms could result, according to Brett Quick of the Crypto Council for Innovation.

Brett Quick, head of government affairs at Crypto Council for Innovation, told CoinDesk TV’s “First Mover” on Thursday that the U.S. Securities and Exchange Commission’s enforcement action against Coinbase (COIN) may lead to more defined regulations for the crypto industry.

She cautioned, however, that crypto companies may simply relocate outside the country.

Other jurisdictions around the world are embracing technology, innovation, and the developers, and they are establishing regulatory clarity, Quick explained. As a result of allegations that Coinbase sold unregistered securities on its exchange and through its staking service, the SEC issued a Wells notice on Wednesday.

In the case of this type of development, the silver lining is that it will force the establishment of case law that will inform how crypto is regulated, as well as set some rules of the road for crypto to follow.” said Quick.

According to Coinbase, it has met with the SEC more than 30 times in the last nine months, seeking more “reasonable crypto rules.”

It’s not so much that there are “onerous disclosure requirements” or high registration fees, but that “some elements of existing securities laws are simply not compatible with the technological innovation of crypto.”

It’s vital that regulatory clarity for crypto is better defined in order to keep the United States’ innovative edge in spite of significant barriers to the crypto industry’s operation in the U.S. right now, Quick said.


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