Coinbase to pitch regulatory framework to US authorities

Karthik Subramanian

Coinbase, one of the largest crypto exchanges in the world based out of the US, is reportedly preparing to pitch a regulatory framework addressed to the Government officials in the coming days.

SEC threatens survival of alternative mutual funds

It is expected that this would be rolled out publicly in the coming days though no details of it have been revealed so far and a spokesperson of the company also refused to comment on the same, as reported by Coindesk. This comes in the backdrop of the SEC threatening to sue the exchange if it went ahead with its plans to introduce its Lend product. This threat had forced the exchange to backtrack on those plans as it thought it would be better to stir the hornet’s nest at this point. But it doesn’t seem to have dropped the idea altogether as yet.

The main complaint against the lending product was that it constituted security and it violated the laws that governed securities. For this, 2 Supreme court precedents were cited which are the Howey and Reves cases. The regulator was reportedly comparing the lending product to stocks or certificates of interest which constitute a security. This is the basis not only for this product but for all arguments that the SEC seems to have against the crypto ecosystem.

The SEC views most of the cryptocurrencies as securities and hence violate such laws while the critics say that most of the cryptos and related product do not belong to this category. Coinbase had undertaken a similar effort in 2019 where it ranked specific cryptos as likely being considered as securities as it has realized that the SEC needs to change its stance for the crypto ecosystem to further its growth in the US but so far, the SEC does not seem to have budged from its stance.

On the other hand, Coinbase has proceeded with applying for an NFA license which would give it the ability to launch crypto derivatives as it continues to be at loggerheads with the SEC over its new products. Coinbase would not want to rub the regulators in the wrong way and the best example for that is Binance which has been struggling with regulations and compliance over the last few months which has hit its business badly during this period.

Read this next

Retail FX

XPRTcoin Review 2022 – Is XPRTcoin Scam or Legit?

Read our XPRTcoin review today to learn all you need to know about XPRTcoin before signing up with the broker (xprtcoin.com) – by FinanceFeeds.

Retail FX

Financial services domains blocked by Consob rise to 708

In yet another episode in a long-running campaign, the Italian financial regulator, Consob, once again blocked access to a number of investment websites, including those holding licenses in other jurisdictions.

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

<