• Coinbase CEO Brian Armstrong has called for clear crypto regulations in the US due to the ambiguity of current policies.
• US SEC head Gary Gensler has stated that most cryptocurrency tokens are securities and have urged enforcement.
• Other countries such as Singapore, Hong Kong, and South Korea are working to establish themselves as crypto hubs.
Clear Crypto Regulations Needed
Coinbase CEO Brian Armstrong has called for clear crypto regulations in the United States due to the ambiguity of current policies. He believes that without clear legislation, America risks losing its status as a financial hub long-term. This sentiment is shared by other industry leaders who believe that it is impossible for businesses to operate within the law when policy is not well-defined.
SEC Focusing on Enforcement
The U.S Securities and Exchange Commission (SEC) is headed by Gary Gensler who has said unequivocally that most cryptocurrencies are securities and urges enforcement against those breaking existing laws. As an example, Kraken was fined recently for its staking program while Binance USD received a Wells Notice from Paxos authorities.
Other Countries Establishing Themselves as Crypto Hubs
As the United States continues its crackdown on cryptocurrencies, other countries such as Singapore, Hong Kong, and South Korea are establishing themselves as crypto hubs in order to capitalize on this booming industry. The emergence of these players will likely provide stiff competition for American companies looking to take advantage of this burgeoning market.
Kraken CEO Urges Lawmakers To Pass Crypto Legislation
After settling with the SEC and agreeing to pay $30 million, Kraken CEO Jesse Powell also urged lawmakers to pass legislation regarding cryptocurrencies so that businesses can operate legally within the US financial sector without fear of legal repercussions or fines.
It remains unclear whether or not lawmakers will heed calls from industry leaders like Brian Armstrong and Jesse Powell and pass regulations defining how cryptocurrencies should be treated within the US financial system. Until then, companies like Coinbase must continue operating under a cloud of uncertainty which could make it difficult for them to stay competitive with their international counterparts in a quickly evolving field.