TL;DR Breakdown
- Coinbase exchange to propose regulatory framework for US authorities next month.
- This is after SEC threatened to sue Coinbase.
- Coinbase rolls out vacancy to employ legal advisers to improve relationship with regulators.
Coinbase exchange has said it wants to collaborate with US authorities and sketch out a “sensible regulation” for the crypto industry in the US.
Brian Armstrong, Coinbase CEO, said this during a recent interview with TechCrunch, noting that Coinbase exchanges wants to be an advisor and a helpful advocate for how the US can create that sensible regulation.
This comes days after reports emerged that the US Security and Exchange Commission (SEC) is set to sue the company over crypto yield program, which the regulators consider a security.
Coinbase exchange quietly went back on its plan to release the product after announcing the threat it received from the regulators.
In a separate development, the exchange website posted over 350 job openings, including legal and compliance job profiles, to restore its relations with the regulators. The move appears to be in line with Coinbase’s intentions of being the regulator’s advocate.
Vacancies for Legal and compliance team, “head of APAC compliance” in Singapore, “head of international compliance” in London, and “global anti-bribery and corruption managers” in the UK and US were dolled out.
Why Coinbase exchange wants to propose regulatory framework for SEC
During Armstrong’s interview with Techcrunch, he stated that regulators usually seek feedback when forming new rules, particularly in industries similar to cryptocurrency where the pace of technological advancements means that progress in the market has far outpaced the development of new and amendments of existing regulations.
He noted that he has been asked severally for such proposals (regulatory framework).
“When I go to DC, I’ve met with a number of people in government, and they typically will ask us ‘Well, do you have a draft, do you have a proposal of something we could try to shop around about how this could be regulated federally?’,” he said. “Because right now, Coinbase has, you know, 50 different state regulators for money transmission licenses, 50 for lending licenses, you know, FINCEN, and SEC, and CFTC, and IRS and Treasury and OFAC.”
The CEO would prefer a framework that would remove the burden of dealing with independent state-by-state rules and agencies.
