‘US has left a vacuum that other countries are eager to fill’: Coinbase

With Coinbase apparently on the verge of a court battle with the Securities and Exchange Commission (SEC), the firm has emphasized that the US government’s hawkish approach to crypto regulation has “left a vacuum that other countries are eager to fill.”

The SEC issued a Coinbase well notice on March 22 explaining that SEC staff had recommended the agency take enforcement action regarding “possible violations of securities laws” regarding some of the company’s asset listings, staking services and Coinbase Wallets.

In a March 23 blog post titled Europe wins. Will the US catch up? Daniel Seifert, Coinbase’s Vice President and Regional Managing Director in Europe, emphasized that “the regulatory approach to US crypto has been marked by regulation by enforcement,” despite industry calls for “comprehensive crypto regulation.”

“This approach creates an uncertain and unstable environment in the crypto industry,” he wrote.

Thus, Seifert stated that the US is losing its status as the main hub of the crypto sector, while France, the UK and the European Union, are now building a “viable” ecosystem thanks to a friendlier approach to crypto regulation.

“The U.S. has left a vacuum that other countries want to fill,” he wrote, adding: “we are proud to be an American company. It’s hard to sit back and watch the U.S. waste the opportunity it gave us.”

In particular, Seifert highlighted the importance of the Blockchain Week event held at the Louvre in Paris this month. He also pointed to the UK’s recent push to become a crypto hub, and the European Union’s Markets in Crypto-Assets (MiCA) regulation scheduled to come into effect in 2024.

“This year it was held in a private space in the Louvre, probably the greatest national treasure in France and one of the most respected museums in the world,” he said, adding:

“For me this is a clear signal: France is quickly recognizing the opportunities that crypto presents and giving it space to develop. The European Union, the United Kingdom, the UAE, Hong Kong, Singapore, Australia, and Japan are all following.

The MiCA law has been in development for two years, and aims to establish “a harmonized set of rules for crypto assets and related activities and services.”

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It is generally expected to be a positive step for the European cryptocurrency ecosystem, as it will provide clear rules and guidelines for the sector.

“Now we see that Europe now matches the US in crypto developers (29% of each globally). The US used to lead the charge with 40%,” he said, adding:

“This rate of growth does not happen by chance. A concerted effort must be made, such as developing a regulatory framework that will provide clarity and stability for businesses operating in this space.

In a lengthy March 23 Twitter thread, the Crypto Council for Innovation also highlighted the same points as Seifert, noting that “crypto is global, and no one is waiting for the United States to get on board.”

The thread explores positive developments around the globe, including examples such as the National Australia Bank’s work with non-USD stablecoins, Hong Kong’s efforts to become a center for digital assets, and the Canadian Securities Administration recently implementing “enhanced investor protection commitments” domestically. crypto exchange.