ZINGER KEY POINTS
- Fitting crypto into traditional laws: Experts question SEC’s approach.
- Experts call for collaboration: Establishing clear legal framework for crypto in the US.
The Securities and Exchange Commission’s (SEC) Wells notice to Coinbase has sent ripples across the cryptocurrency industry, with experts expressing concerns over the regulator’s approach to regulating the market.
The SEC alleges several violations and highlighted the potential consequences of the ongoing debate about classifying cryptocurrencies as securities, emphasizing Coinbase’s history of compliance with regulatory requirements.
The experts called for a cooperative stance between Coinbase and regulators, urging the establishment of a clear legal framework around cryptocurrency in the United States in order to benefit the entire industry.
AMLBot co-founder Slava Demchuk expressed concerns over the SEC’s approach to regulating the cryptocurrency market, which attempts to fit cryptocurrencies within existing laws designed for traditional financial institutions.
“I suppose all crypto market will support Coinbase in the battle against SEC. It seems like SEC’s latest active participation against crypto market participants aims at destroying the crypto market in the USA,” he said.
Nikolay Denisenko, co-founder and CTO of neo-digital banking app Brighty, highlighted the potential consequences of the SEC’s Wells notice for the ongoing debate about classifying cryptocurrencies as securities and Coinbase’s defense strategy.
“If Coinbase successfully defends itself, it could lead to increased regulatory clarity for the crypto industry, benefiting all parties involved. Coinbase has a strong interest in safeguarding its position, and by doing so, it contributes to the establishment of transparent regulatory guidelines for the future,” he said.
Intergovernmental Blockchain Advisor Anndy Lian called for a cooperative stance between Coinbase and regulators in establishing a clear legal framework around cryptocurrency in the U.S.
“Listing on Coinbase is so much harder than Nasdaq in my humble opinion. If Coinbase fails this preview, then no other companies in the U.S. will pass it. This is just a way for regulators to know more about the crypto business. The stance for Coinbase should be cooperative and work together with the regulators to create clear laws around crypto which will then benefit the whole crypto industry,” Lian said.
Coinbase described the investigation as “cursory” and said the notice provided “relatively little information” about the alleged violations.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.