Crypto giant Coinbase halts BUSD trading: Is the SEC cracking down on stablecoins?Coinbase CEO Brian Armstrong has waded into the issues surrounding regulations and the activities of traders in the market. The exchange boss gave his statement as a reaction to the news that regulators in the US are now looking into FTX.US. According to the update, regulators are investigating exchanges in the US about the recent crises at FTX.
Coinbase CEO says regulators are pushing out investors
According to his statement, the Coinbase CEO believes that it doesn’t make any sense for regulators to investigate exchanges in the US because of issues befalling a company outside the country. Some days back, Senator Elizabeth Warren opined that regulators should start looking into the activities of exchanges in the country as a means to avert issues that befell the FTX exchange.
Armstrong mentioned that the SEC holds a larger part of the blame because, despite calls from well-meaning citizens, they have been unable to come up with solutions to the regulatory issues. He believes that this is one of the reasons why over 95% of the investors in the country take their trading activities offshore instead of exchanges in the country.
In his reaction to the statement of the Coinbase CEO, Ripple boss Brad Garlinghouse made an example out of Singapore. Unlike the United States, Singapore has strong laws guarding the activities of companies and users in the crypto market. Notably, Garlinghouse’s company is presently in a legal tussle with the US SEC over securities-related issues. After the fall of FTX, there was news that the DOJ and other regulatory bodies have been looking into the US branch of the third largest exchange.
The report claims that the regulatory bodies are trying to determine which one of the company’s products is securities and which is not. FTX was one of the biggest firms in the market and looked healthy despite the market turmoil. The company recently announced that pending some details, it will be acquired by Binance. However, all hell broke loose when Binance released a statement saying that it will no longer acquire the company, causing issues within the company. There are present rumors of funds of users being mismanaged, with the company sourcing for a bailout in the coming days.
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