As Coinbase appears to be on the verge of a legal battle with the Securities and Exchange Commission (SEC), the company pointed out that the US government’s hawkish approach to crypto regulation has “left a void ‘other countries are eager to fill’.
The SEC issued a well notice on Coinbase on March 22 stating that SEC staff had recommended that the agency take enforcement action against “possible violations of securities laws” regarding some of the listings. company assets, staking services and Coinbase Wallet.
In a blog from March 23 job title Europe wins. Will the United States catch up? Daniel Seifert, vice president and regional general manager of Coinbase in Europe, pointed out that “the US regulatory approach to crypto has been marked by regulation by enforcement,” despite calls for scale. of the industry for “comprehensive regulation of crypto”.
“This approach has created an environment of uncertainty and instability in the crypto industry,” he wrote.
Coinbase’s Best Lawyer @iampaulgrewal says SEC wants court fights instead of conversation.
In dozens of meetings with the SEC over the past 9 months, Grewal said the exchange had “essentially left no answers” to key questions.
— Laura Shin (@laurashin) March 24, 2023
As such, Seifert argued that the United States was losing its status as the main hub of the crypto industry, while France, the United Kingdom and the European Union were now building “dynamic” ecosystems due to of their friendlier approach to crypto regulation.
“The United States has left a void that other countries are eager to fill,” he wrote, adding, “We are proud to be an American company. It’s hard to sit still and watch the United States waste the opportunity they were given.
The SEC misses one of the biggest frauds in history – FTX/Alameda
Gary Gensler closes in on fraud boss – SBF
And then the SEC goes after the most legitimate company in crypto – Coinbase
Yes yes very normal and totally rational
— sassal.eth (@sassal0x) March 23, 2023
In particular, Seifert highlighted the importance of the Blockchain Week event held at the Louvre in Paris this month. He also highlighted the UK’s recent push to become a crypto hub and the European Union’s regulation of crypto-asset markets (MiCA) which is expected to come into force in 2024.
“This year it is held in a private space at the Louvre, arguably France’s greatest national treasure and one of the most respected museums in the world,” he said, adding:
“To me, this is a clear signal: France is quickly recognizing the opportunity crypto presents and providing space for it to flourish. The enlarged EU, UK, UAE, Hong Kong, Singapore, Australia and Japan are following suit.
The MiCA legislation has been in the works for two years and aims to establish a “harmonized set of rules for crypto-assets and related activities and services.”
Related: Cathie Wood’s ARK reloads on Coinbase shares again, buying $18 million
This is widely expected to be a positive development for the European cryptocurrency ecosystem, as it will offer clear rules and guidelines for the industry.
“We already see Europe now matching the US in its share of crypto developers (29% each globally). The US was leading the charge with 40%,” he said, adding that :
“This level of growth does not happen by chance. Concerted efforts must be made, such as developing a regulatory framework that will bring clarity and stability to businesses operating in space.
In a lengthy Twitter thread from March 23, the Crypto Council for Innovation also made similar points to Seifert, noting that “crypto is global, and no one is waiting for the United States to land the plane.”
1/ Crypto is global, and no one is waiting for the US to land the plane. Here, our roundup of global activity ():
– Crypto Council for Innovation (@crypto_council) March 24, 2023
The thread explored positive developments around the world, including examples such as National Australia Bank’s work with non-USD pegged stablecoins, Hong Kong’s efforts to become a hub for digital assets and the Canadian securities administration recently imposing “enhanced investor protection covenants” on national markets. crypto exchanges.