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Crypto industry needs clarity, says CEO of major exchange

Coinbase takes SEC to court, begins counterattack

Coinbase is one of the major crypto exchanges that has landed in the middle of the crypto storm. After multiple accusations and indictments from the US regulators, Coinbase has even counterattacked. In an Interview with The Wall Street Journal, Coinbase CEO Brian Armstrong is signaling that something needs to be done. The American financial regulators do not seem to come to a constructive solution for the American crypto sector.

SEC and CFTC can’t figure it out

The biggest topic of discussion and conflict in the crypto world right now is whether cryptocurrencies are securities or not. According to the US Securities and Exchange Commission (SEC), a large number of crypto assets are unregistered securities, and offering them is illegal.

However, another US regulator, the Commodity Futures Trading Commission (CFTC), regularly contradicts the SEC. For example, the CFTC called ethereum (ETH) a commodity rather than a security. It is unclear which of the two has the upper hand and the crypto sector is the major victim of all legislative ambiguities.

Lack of clarity in crypto rules

Armstrong believes the US crypto industry needs one thing right now: clarity. If the above two financial watchdogs cannot work it out, then perhaps the US Congress should take over and make the decision, Armstrong said.

Armstrong also points to the complete lack of help from the SEC. For example, Coinbase requested advice from the SEC several times and asked whether certain tokens could be offered on the platform or not. However, the exchange did not receive any response to the questions.

Coinbase sent a petition to the SEC asking these questions a year ago, but the regulator refused to answer the questions. Through a lawsuit, Coinbase has enforced in court that the SEC must now fill in this petition. If all goes well, we’ll get an answer from the SEC on this tomorrow.

Despite the frustrating situation US crypto companies have found themselves in, Armstrong is optimistic. It may take several years, but eventually the United States will also achieve the “right outcome,” Armstrong believes. Perhaps this outcome will be achieved when the US Congress intervenes.

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