Crypto exchange Coinbase says that the U.S. Securities and Exchange Commission’s (SEC) enforcement-only approach is negatively impacting America.
In a new blog post, Coinbase says that “while the majority of the world’s economic powers are embracing a technology that can increase economic opportunity, the SEC’s regulation by enforcement-only approach is costing the US millions of jobs and pushing opportunity offshore.”
According to Coinbase, the SEC is pursuing an enforcement-only approach despite its chair Gary Gensler testifying to the U.S. House Committee on Financial Services in May of 2021 that domestic crypto exchanges “do not have a regulatory framework either at the SEC or our sister agency, the U.S. Commodity Futures Trading Commission (CFTC).”
“The enforcement-only approach continues despite 9 in 10 Americans believing it’s time to update a financial system so as to make it more fair and where progress is being slowed down by the status quo.
This enforcement-only approach continues despite 52 million people – or 1 in 5 Americans – owning crypto.
This enforcement-only approach continues despite courts having ruled against the SEC in a number of high-profile instances, including the Grayscale case where the court found that the SEC acted in an ‘arbitrary and capricious’ manner.”
According to Coinbase, a legislative approach is the “best way” forward.
“Despite the SEC’s enforcement-based approach, Congress is stepping up to advance comprehensive crypto legislation. These efforts are critical to ensure the US does not fall further behind other jurisdictions.
A legislative approach to creating crypto regulation is the best way to ensure consumer protection, and also ensure that digital asset innovation and the jobs created by it remain in the US.”