Today, Paul Grewal, Coinbase’s chief legal officer, is due to speak about a proposed cryptocurrency bill in the United States. While he welcomes the initiative, he nevertheless maintains that the country is “behind” compared to other regions of the world.
Coinbase Chief Legal Officer Urges US Regulatory Clarity
While the position of the United States vis-à-vis cryptocurrencies has been in the news since the beginning of the year, Paul Grewal, the general counsel of Coinbase, will testify today on Capitol Hill before the House Agriculture Committee.
Tomorrow I will be testifying on Capitol Hill before the House Committee on Agriculture on the need for clear crypto rules and the Digital Asset Market Structure Discussion Draft. Read a summary of my testimony here/below:https://t.co/V4vTo0OT6L
— paulgrewal.eth (@iampaulgrewal) June 5, 2023
This follows an announcement last week, which saw GT Thompson, the chairman of said Committee, as well as Patrick McHenry, chairman of the House Financial Services Committee, publish a joint digital asset law proposal.
One of the sentences uttered on this occasion by Dusty Johnson, the chairman of the subcommittee on commodity markets, digital assets and rural development, particularly echoes this legal vagueness in the United States:
“There is a lot of confusion around digital assets. Our bill establishes a functional framework to bridge the gaps in the regulatory process between the CFTC and the SEC. »
It is therefore in this continuity that Paul Grewal call on Congress to continue its efforts to provide a regulatory framework :
“Congress needs to draw lines between when digital assets and the technology that underpins them should be regulated as commodities, when they should be regulated as securities, and when financial regulations should not be s apply or would simply not make sense. »
👉 To go further — Can SEC actions influence crypto regulation in Europe? Interview with Meria
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“The United States is lagging behind”
In the speech he plans to give, Paul Grewal considers that the bill “represents a big step forward“, but he also deplores the fact that the United States is “lagging behind“.
To support his words, he takes the example of regulation in the European UnionHong Kong, and countries like the UK and Australia.
In addition, Coinbase’s legal director indicates that while some cryptocurrencies are indeed securities or commodities, others do not fit into any category, which justifies the need for a clear framework.
As a result, while 20% of Americans hold and/or use cryptocurrencies, Paul Grewal believes that this project is only a first stepwhile the industry is destined to develop:
“Crypto is here to stay, and it is in America’s interest for Congress to ensure that digital assets are appropriately defined and regulated using a risk-based approach. »
While Patrick McHenry has previously called Gary Gensler to account for his actions against cryptocurrencies, that hasn’t stopped the chairman of the Securities and Exchange Commission (SEC) from continuing his regulatory crusade. Besides, this one reached a new milestone yesterdaywith the attack on Binance.
👉 Also in the news — Binance and its CEO Changpeng Zhao sued by the SEC, the crypto market goes into the red
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Sources: Coinbase, Bill
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