- The top cryptocurrency exchange in the United States, Coinbase has proactively pushed for regulatory compliance by filing a draft registration statement to the Securities and Exchange Commission (SEC). With this action, the regulatory uncertainty may very well be addressed, and Coinbase will be guaranteed to comply with any upcoming regulatory changes pertaining to cryptocurrencies.
COINBASE PUSHES BACK
Investors are full of FUD(Fear, Uncertainty, and Doubt), and are uneasy since the SEC, under the guise of Gary Gensler, has not yet categorized cryptocurrencies as commodities, yet mostly securities, that have to “come in and comply.”
The Administrative Procedure Act (“the APA”) requires the SEC to respond to Coinbase’s rulemaking petition “within a reasonable time.” If the SEC says no to our rulemaking petition, which it has the right to do, then Coinbase would be allowed to challenge that decision in court and explain in that formal setting why rulemaking is required. So it’s important for the SEC and any other agency petitioned for rulemaking to respond to the petition once the agency has made up its mind, especially if the answer is no – otherwise the public can never exercise its right to ask a court if the agency’s decision was proper.
https://www.coinbase.com/blog/coinbase-takes-another-formal-step-to-seek-regulatory-clarity-from-sec-for
Although some members of the cryptocurrency community have criticized Coinbase for being overly centralized and for working with regulators, the business maintains that compliance with regulations is essential for the long-term viability of the cryptocurrency industry. As Coinbase states:
Coinbase does not take any litigation lightly, especially when it relates to one of our regulators.
https://www.coinbase.com/blog/coinbase-takes-another-formal-step-to-seek-regulatory-clarity-from-sec-for
The action taken by Coinbase to seek regulatory clarity is anticipated to serve as a model for other businesses operating in the cryptocurrency industry. Companies may ensure that they remain compliant with any future regulatory developments while establishing trust and credibility by being proactive in their approach to compliance.
