Crypto Advocate Sees 'Silver Lining' for the Industry in SEC's Warning to Coinbase

Raw Text

Policy

Brett Quick from the Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms.

By Fran Velasquez

Mar 23, 2023 at 6:28 p.m. UTC

Updated Mar 23, 2023 at 6:55 p.m. UTC

Facebook icon

Linkedin icon

Twitter icon

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Facebook icon

Linkedin icon

Twitter icon

Fran Velasquez

Fran is CoinDesk's TV writer and reporter.

Follow @ _franvela on Twitter

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

The U.S. Securities and Exchange Commission’s pending enforcement action against crypto exchange Coinbase (COIN) may lead to more defined rules for the crypto industry, Brett Quick, head of government affairs at Crypto Council for Innovation, told CoinDesk TV's "First Mover" on Thursday.

The danger, however, is that crypto companies may simply move outside the U.S., she said.

“There are other jurisdictions around the world that are looking at ways to embrace the technology, to embrace the innovation and the developers that are working on it and they're establishing regulatory clarity,” Quick said.

On Wednesday, the SEC issued a Wells Notice to Coinbase for allegedly selling unregistered securities on its exchange and through its staking service.

“The silver lining, to the extent there is one of this type of development, is that it will force the establishment of case law that will inform how crypto is regulated and it will set some rules of the road for crypto to comply with,” Quick said.

In a blog post , Coinbase said it has met with the SEC more than 30 times in the last nine months, seeking more “reasonable crypto rules.”

Quick said that it isn’t so much that there are “onerous disclosure requirements” or hefty lumps of money to register, it’s that “there are elements of existing securities laws that simply don't work with the technological innovation of crypto."

Although there appears to be significant hurdles for the crypto industry to operate in the U.S. now, Quick said, it is vital that regulatory clarity for crypto is better defined in order to keep the United States’ innovative edge.

Coinbase is a member of the Crypto Council for Innovation.

Read more: SEC Warns Coinbase It's Pursuing Enforcement Action Over Securities Violations

DISCLOSURE

Please note that our privacy policy , terms of use , cookies , and do not sell my personal information has been updated . The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups . As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights , which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG .

Fran Velasquez

Fran is CoinDesk's TV writer and reporter.

Follow @ _franvela on Twitter

Learn more about Consensus 2023 , CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Fran Velasquez

Fran is CoinDesk's TV writer and reporter.

Follow @ _franvela on Twitter

Read more about

SEC

Coinbase

Crypto Council for Innovation

Brett quick

CoinDesk TV

Single Line Text

Policy. Brett Quick from the Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms. By Fran Velasquez. Mar 23, 2023 at 6:28 p.m. UTC. Updated Mar 23, 2023 at 6:55 p.m. UTC. Facebook icon. Linkedin icon. Twitter icon. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. Secure Your Seat. Facebook icon. Linkedin icon. Twitter icon. Fran Velasquez. Fran is CoinDesk's TV writer and reporter. Follow @ _franvela on Twitter. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. Secure Your Seat. The U.S. Securities and Exchange Commission’s pending enforcement action against crypto exchange Coinbase (COIN) may lead to more defined rules for the crypto industry, Brett Quick, head of government affairs at Crypto Council for Innovation, told CoinDesk TV's "First Mover" on Thursday. The danger, however, is that crypto companies may simply move outside the U.S., she said. “There are other jurisdictions around the world that are looking at ways to embrace the technology, to embrace the innovation and the developers that are working on it and they're establishing regulatory clarity,” Quick said. On Wednesday, the SEC issued a Wells Notice to Coinbase for allegedly selling unregistered securities on its exchange and through its staking service. “The silver lining, to the extent there is one of this type of development, is that it will force the establishment of case law that will inform how crypto is regulated and it will set some rules of the road for crypto to comply with,” Quick said. In a blog post , Coinbase said it has met with the SEC more than 30 times in the last nine months, seeking more “reasonable crypto rules.” Quick said that it isn’t so much that there are “onerous disclosure requirements” or hefty lumps of money to register, it’s that “there are elements of existing securities laws that simply don't work with the technological innovation of crypto." Although there appears to be significant hurdles for the crypto industry to operate in the U.S. now, Quick said, it is vital that regulatory clarity for crypto is better defined in order to keep the United States’ innovative edge. Coinbase is a member of the Crypto Council for Innovation. Read more: SEC Warns Coinbase It's Pursuing Enforcement Action Over Securities Violations. DISCLOSURE. Please note that our privacy policy , terms of use , cookies , and do not sell my personal information has been updated . The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups . As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights , which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG . Fran Velasquez. Fran is CoinDesk's TV writer and reporter. Follow @ _franvela on Twitter. Learn more about Consensus 2023 , CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now. Fran Velasquez. Fran is CoinDesk's TV writer and reporter. Follow @ _franvela on Twitter. Read more about. SEC. Coinbase. Crypto Council for Innovation. Brett quick. CoinDesk TV.