Following the failure of Terra Luna UST and FTX in 2022, there has been a growing chorus of voices in the United States advocating for regulating crypto asset markets.
Already, authorities in the United States are investigating the FTX and Alameda case, and key personnel, including former Chief executive Sam Bankman-Fried (SBF) and ex-FTX head of engineering Nishad Singh, amongst others, are in police custody as part of the investigation.
The SEC filed charges against Terraform Labs PTE Ltd and Do Kwon last month, accusing them of instigating multi-billion dollar crypto-asset financial crimes that included an algorithmic stablecoin and other crypto assets.
On the other hand, the pushback against bitcoin staking, the altcoin marketplace, and the stablecoins business have garnered significant attention.
After agreeing with the SEC to pay a fine of $30 million, the cryptocurrency exchange Kraken decided to discontinue its crypto staking program.
This decision was made at the beginning of the previous month. Gary Gensler, the chair of the SEC, has stated that all crypto assets, except Bitcoin, are unregistered securities.
This is made clear by the recent directive given to Paxos by the New York Department of Financial Services (NYDFS) to stop the minting of additional Binance-backed BUSD coins.
Coinbase CEO Pleas for More Transparent Cryptocurrency Rules
According to Brian Armstrong, Chief Executive Officer of Coinbase Global Inc, the United States is falling behind the rest of the globe in terms of putting its regulatory framework in order, while the rest of the world is embracing crypto technology.
In a new interview (1) on CNBC, Armstrong defended the bitcoin staking sector, stressing that it in no way resembles security in any way, shape, or form.
The U.S. financial system doesn't serve everyone equally—it's time for an update. @SquawkCNBC @andrewrsorkin https://t.co/5arQzSZyw3
— Coinbase 🛡️ (@coinbase) March 1, 2023
According to the tech mogul, Coinbase is willing to stand up for the staking sector in a court of law if necessary.
Armstrong believes that the market for crypto assets is here to stay, which is why traditional financial institutions are beginning to integrate with the blockchain and cryptocurrency business.
Armstrong stated that many traditional financial services companies are currently incorporating this technology.
“Every company, from JPMorgan to Visa and Mastercard to Franklin Templeton, has initiatives and teams working internally on incorporating cryptocurrency into their services,” said the researcher.
Consequently, Armstrong demanded that the authorities in charge of regulating the financial systems in the United States bring them up to date so that they can serve all people equally.
He noted that most of the world’s financial centers, such as Singapore, Hong Kong, and the European Union, have already established investor-friendly policies for cryptocurrencies to attract international and domestic investors.
As a direct consequence, the tech mogul stated that his top aim for this year would be to lobby for establishing transparent cryptocurrency rules in the United States.
Armstrong stated that the policy climate would be his top task for the coming year.
“Most of the world’s population has come around to accepting cryptocurrency. We have witnessed all of the main financial hubs, including Singapore, Hong Kong, and London, and the European Union has only recently implemented comprehensive cryptocurrency laws… We need a comprehensive rule book to establish this industry at this location.
Coinbase recently announced the launch of Crypto435, an initiative to accelerate the adoption of crypto in the US.