Coinbase exec urges SEC reform after Trump’s election win

by

As a seasoned financial analyst with over two decades of experience in the industry, I have witnessed the evolution of regulations and their impact on various sectors. The recent developments surrounding Coinbase and the SEC under President Trump’s administration have piqued my interest.

Paul Grewal, the top legal representative at Coinbase, recently called on the U.S. Securities and Exchange Commission to reconsider its stance on cryptocurrencies in light of President Donald Trump being re-elected for a second term.

Grewal conveyed optimism that the Securities and Exchange Commission (SEC) might establish a regulatory structure that encourages open discussions and fosters innovation rather than lawsuits, echoing a sentiment shared by more and more cryptocurrency supporters who are becoming increasingly disgruntled with what they perceive as excessive enforcement measures by the US regulator.

If Trump intends to dismiss SEC Chairman Gary Gensler, a potential reshuffling at the SEC might have far-reaching implications beyond just the future of cryptocurrency in the United States.

Trump election and SEC shakeup

Following his election victory, Trump promised to concentrate on bringing unity to the nation and “reversing the country’s course.” During his campaign, he had sworn to dismiss Gensler on his first day in office as part of halting what he termed the Biden-Harris administration’s “anti-cryptocurrency offensive.

During Gensler’s leadership at the SEC, I’ve noticed a heightened focus on enforcing regulations within the crypto space. Notably, they’ve taken action against some prominent figures in the industry, such as centralized exchanges like Coinbase and decentralized platforms such as Uniswap, indicating a proactive approach towards maintaining fairness and compliance in this dynamic market.

In my role as an analyst, I’ve observed that without clear-cut regulatory guidelines, cryptocurrency companies are grappling with ongoing uncertainties regarding compliance. As Grewal suggests, these ambiguities might find resolution through the process of “rulemaking.

Will “Crypto Mom” come to the rescue?

Trump’s promise to replace Gensler has sparked discussions about possible replacements, with particular focus on individuals who might adopt a more favorable stance towards cryptocurrencies.

Commissioner Hester Peirce, who’s well-known for her supportive views on cryptocurrencies, frequently comes up in discussions as a possible successor to Gensler, affectionately referred to as “Crypto Mom” by the crypto community due to her championing of the field.

Previously, Peirce criticized the SEC’s strategy focused on enforcement, proposing instead that a clear regulatory framework for the cryptocurrency sector would better align with the public welfare and America’s role as a leader in international digital finance.

Coinbase under scrutiny

Regardless of the drive towards clearer regulations by the SEC, Coinbase has faced criticism as well, due to accusations that they overcharge for listing tokens on their platform.

On November 4th, Justin Sun, the creator of Tron, asserted in a social media post that Coinbase had demanded a payment of approximately $300 million as listing fees to add the Tron token (TRX) to their platform.

Andre Cronje, creator of the Fantom Network, similarly voiced similar opinions as Sun, sharing on November 3rd that Coinbase suggested potential listing fees for Fantom (FTM) amounting to anywhere between $30 million and $300 million. In contrast, Binance‘s fee was stated at zero dollars.

In a November 2nd post, Brian Armstrong, the CEO and co-founder of Coinbase, stated that “listing assets on Coinbase is done for free.” However, recent statements by Sun and Cronje appear to be in direct opposition to this claim.

Read More

2024-11-06 15:30