On July 21st, Coinbase, a cryptocurrency exchange, filed a petition against the Security Exchange Commission (SEC) for digital assets regulations. The exchange has stated that the current regulatory rules don’t operate well with crypto assets.
Coinbase Files a Petition against the SEC’s Rules
Coinbase has stated that the rules and petition laid by the SEC on digital assets are misleading technological developments. The digital asset exchange solicited the SEC to come up with a regulatory structure conducted by public notice and formal procedure instead of selective administration.
The petition comes along the same day the SEC files 9 tokens as securities.
SEC Prevents Digital Assets Development in the US
Faryar Shirzad, Coinbase chief policy officer, said that there have been huge developments in the crypto community. The growth emanates from the introduction of Blockchain Technology 13 years from now. However, there is inadequate development of digital assets in the United States of America, simply because of some arbitrary laws considered to aid the regular investor.
He added that the regulations based on crypto assets are null and indecent to future generations. The future needs crypto assets as there is a shift from a second-world technology to a third-world-based tech system. Moreover, the state’s developments should be fueled by a new innovation instead of putting heavy measures on digital assets in the name of security.
The country needs a solid situation where all individuals can become accredited investors. Investments are driven by trade. In contemporary society, virtual trade generates lots of revenue. By giving digital assets an opportunity, US economic development will shoot to the moon.
Several companies have challenges raising funds to withstand crypto volatility. The problem is underlined by the Security and exchange commission. The regulatory commission(SEC) challenged Ripple XRP by claiming that virtual currency is security. Ripple’s assets went down by several billion as investors counted losses.
Digital Assets as a Third World Financial Crisis Solution
The digital exchange believes setting new regulations that are publicized will enhance stakeholders to operate liquidly. Crypto can offer debts that the investors can leverage and induce more income for another individual. As the trade continues the United States economy develops.
Additionally, more states and unions have set new rules regarding cryptocurrency. The European Union, Italy and Japan are among the states that have set new regulations in favor of digital assets. On 18th July, Coinbase secured a license to operate cryptography in Italy. A move towards future development.
On 14th July, Gary Gensler, the Security and Exchange Commission chair, said that cryptocurrency lending organizations are offering impartible offers. In an interview with Yahoo Finance, he added that there are more risks submerged in active lending. Moreover, 4% to 20% offered by lenders are the safest, the rest are securities.
His statement came during the crypto market short run. Most companies are forced to undergo bankruptcy. For instance, Voyager digital and Celsius whose financial states are beneath survival.