• Coinbase CEO Brian Armstrong has called on Congress to pass clear crypto legislation, warning that the U.S. risks losing its status as a financial hub.
• The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has insisted that the law is clear and that most crypto tokens are securities.
• Several other jurisdictions are striving to become a cryptocurrency hub, including Singapore, Hong Kong, and South Korea’s second-largest city, Busan.
Coinbase CEO Urges Clear Crypto Legislation
Coinbase CEO Brian Armstrong has urged Congress to pass clear crypto legislation in order to protect America’s status as a financial hub. He warned that without clear regulations on crypto, the US could face competition from other countries leading in this space like Europe, the UK and Hong Kong.
SEC Chair Insists Law is Clear
The Chairman of the SEC Gary Gensler insists that most crypto tokens are securities according to existing law and regulation and has taken an enforcement-centric approach with regards to regulating the industry. Recently Kraken settled with the SEC for $30 million over its taking program while Paxos was sent a Wells Notice over stablecoin Binance USD (BUSD). Terraform Labs were also charged with defrauding investors earlier this week due to alleged misstatements regarding their token offering.
Coinbase Staking Services Not Considered Securities
Coinbase have been vocal in their assertion that their staking services should not be considered securities under any circumstances; they vow to defend this position if necessary in court or elsewhere. They further noted that it is unclear what aspects of BUSD interest the SEC but made it known that stablecoins should not be considered securities either way.
Other Jurisdictions Competing for Financial Hub Status
With tighter regulations coming into play in North America others such as Singapore, Hong Kong and South Korea’s second largest city Busan will look to become cryptocurrency hubs instead which could threaten America’s long-term grip on being a financial hub worldwide unless clearer legislation is passed soon by Congress according to Jesse Powell of Kraken who recently settled with the SEC himself after his exchange was charged with fraud allegations earlier this year too..
It remains evident that there is still much confusion over what does or does not constitute a security when it comes to cryptocurrencies – something which needs clarification sooner rather than later otherwise America’s status as one of world’s leading financial hubs may be in jeopardy if other nations start outstripping them in terms of innovation within this space due lack of clarity on legislation surrounding digital assets