The various falls of crypto platforms in recent years have convinced the SEC of the need to change legislation. The US regulator has indicated that the crypto sector must be subject to controls to avoid destabilization of the general economy. In this context, it has recently proposed a series of rules which it considers useful for better control of the sector. Very quickly, Coinbase reacted, maintaining that the new rules would not affect it.
Coinbase would be a model for crypto exchanges!
The SEC made public on February 14 a new proposal for guidelines for a certain type of crypto business. These are companies offering their services as qualified custodians for institutional funds. After the SEC’s release, Coinbase said its business model would not be affected by these rules.
The company’s legal director asserted that there would be no no adjustment to be made to comply with regulations. Indeed, Paul Grewal explained that Coinbase is already compliant and adopting appropriate measures to safeguard funds. He also suggested that other crypto platforms should learn from Coinbase.
“I think when it comes to Coinbase, we see SEC officials acknowledging that, specifically, Coinbase operates in a qualified manner. In many ways, it’s about bringing the rest of the industry up to the standard that Coinbase has set for itself.“, said Grewal during an interview with Bloomberg.
In the past, Coinbase has often claimed that it does not operate in the same way as its competitors. Grewal’s recent statements therefore only reiterate these words. Separately, Coinbase’s chief legal officer supported the SEC’s decision on Twitter. He welcomed the initiative by reminding the cryptosphere that nothing is set in stone and that everything can still change.
Gary Gensler, the chairman of the SEC, suggested that it was necessary to put pressure on crypto platforms. He then referred to the structural problems linked to the way in which the latter usually handle client funds. “Make no mistake: based on how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians.“, did he declare. It must be said that the regulations being developed could force crypto companies to strengthen the security of funds. They will have to provide guarantees showing that the assets of the clients are separated from the funds necessary for their operation.
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