Coinbase blames US regulators for lack of coordination, as the US lawmakers still cannot figure out how to classify the digital assets: either as securities, commodities, property, or money. Coinbase’s Lempres has also added that the US regulatory system “is harming healthy innovation.” This is due to the lack of understanding of the market.
15 March, AtoZForex – The US Subcommittee on Capital Markets, Securities, and Investment has held a hearing called “Examining Cryptocurrencies and ICO Markets” in Washington this Wednesday. The authorities have discussed some topics in relation to the cryptocurrency and Initial Coin Offerings.
US regulators are harming innovation, says Lempres
During the hearing, the Subcommittee has addressed ICOs and cryptocurrency, the provision of the legal support to the investors and the potential benefits for the economy. The development of a regulatory framework for these markets was also discussed.
The Chief Legal and Risk Officer at Coinbase wallet and cryptocurrency exchange, Mike Lempres has given a testimony during the hearing. He has stated that the power of cryptocurrency technology is capable of transforming “capital formation, innovation and economy.” He has added that its “tremendous potential” can be only achieved through “responsible regulation.”
Yet, at the present stage, the US regulatory system “is harming healthy innovation.” This is due to the lack of understanding of the market. The US lawmakers still cannot figure out how to classify the digital assets: either as securities, commodities, property, or money. Mr. Lempres has further added:
“There is so much uncertainty about the definition of a security and the scope of regulatory control that the market is being chilled. This is bad for everyone because the technology won’t stop — it will simply move overseas and we will miss out on the opportunity to cultivate the benefits in the U.S.”
Coinbase Blames US Regulators for Lack of Coordination
Mr. Lempres made it clear he wants to ensure that the potential benefits from the innovation are not harmed by the uncertainty caused by “regulatory or legal missteps.” Lempres has stated that the SEC see crypto as securities, while at the same time, the CFTC claims that tokens are commodities.
Following on this, the FinCEN, that is responsible for Know Your Customer (KYC) and Anti-Money Laundering (AML) matters, considers tokens as money. Finally, the US IRS believes that the cryptocurrencies can be regarded as property for tax treatment. According to Lempres, this represents a “lack of coordination.”
Think we missed something? Let us know in the comments section below.