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Coinbase is actively challenging the U.S. Securities and Exchange Commission’s (SEC) refusal to create new rules specifically for cryptos.
This ongoing argument shows the bigger challenges the crypto industry faces with regulations as it grows and changes.
SEC’s Pushback on Regulatory Reforms
The SEC recently rejected Coinbase’s request for new crypto-specific rules. It said that the current securities laws from the 1930s are adequate for today’s crypto space.
The SEC’s response came in a court filing on May 10, 2024, where the agency said it was up to its discretion to choose what regulations to focus on without needing an overhaul.
Coinbase accused the SEC of a regulatory “power grab,” but the SEC says its actions in the crypto sector are justified under current laws.
Coinbase Advocates for Clearer Regulations
Coinbase has been quite vocal about the need for better and clearer rules. The exchange argues that outdated laws do not adequately address the unique features of digital assets.
Coinbase’s Chief Legal Officer Paul Grewal has criticized the SEC for handling regulatory processes. He says the SEC sends notices without clearly explaining which assets are involved. This lack of transparency has made things tense between Coinbase and the SEC.
Grewal also pointed out that the SEC hasn’t been using its own procedures consistently in a case against a company in Utah called Digital Licensing Inc. (DEBT Box). He noted how the SEC’s approach in this case undermines confidence in the regulatory process and adds to the confusion surrounding crypto asset classifications.
Commitment To Actively Promote Blockchain Adoption
Despite the regulatory challenges, Coinbase is actively working to help more people understand and use blockchain.
It does this via its learn-to-earn platform that offers educational videos, quizzes, and courses. These efforts show the exchange’s role in supporting the development of the crypto ecosystem.
In fact, the exchange also recently announced that people in the United Kingdom (UK) can now buy Bitcoin and other cryptos using Apple Pay on their iPhones. Coinbase thinks that allowing Apple Pay will give users a safer and more private way to purchase crypto.
Daniel Seifert, who leads Coinbase’s operations in the U.K., said this new feature makes it easier for people in the country to access digital assets.
Coinbase noted that over six million adults in the U.K. own crypto. The company said that integrating Apple Pay is part of its plan to increase this number by making it simpler for people to get started with digital currencies.
This decision came just a few months after George Osborne (ex-UK Finance Minister) joined Coinbase as an advisor.
More About Coinbase UK
Coinbase is a popular crypto exchange that started in 2012 and now has over 100 million users. It lets you trade over 260 different cryptos, including popular ones like Bitcoin, Ethereum, and even newer low-cap altcoins.
It has strong security measures in place – keeping 98% of customer money offline in “cold storage” to protect it from hackers. They also have extra security features like two-factor authentication (2FA), allowing only certain devices or IP addresses to access your account.
The exchange has a dedicated platform called ‘Coinbase Advanced’ for experienced traders. It has advanced charting tools, various order types, and lower fees based on trading volume.
Moreover, the platform’s mobile app can be used as a crypto wallet and is available for iPhone (iOS) and Android phones.
It’s worth noting that Coinbase is currently the third-largest crypto exchange in the world and facing strong scrutiny from the SEC. However, it is well-regulated and listed on NASDAQ and is actively working with many regulators to increase crypto’s adoption.
