Crypto Chaos: Coinbase's Bold Move to Dethrone the SEC! 😱💰

In a move that can only be described as a digital asset soap opera, Coinbase has decided that the US Commodity Futures Trading Commission (CFTC) should be the new sheriff in town when it comes to spot cryptocurrency markets. This bold request could send the Securities and Exchange Commission (SEC) packing, leaving them to ponder their existence like a forgotten sock in the dryer. 🧦

Faryar Shirzad, Coinbase’s chief policy officer and apparently a man with a flair for the dramatic, has penned a two-page love letter to Congress, urging them to act faster than a teenager on TikTok. He’s calling for regulatory clarity and consumer protections for crypto users, because who doesn’t want to feel safe while trading imaginary money? 💸

Shirzad laid out six legislative priorities, the first being to hand over the keys to the CFTC. “Digital assets like Bitcoin and Ethereum are commodities, not securities,” he declared, as if he were announcing the winner of a reality show. “Legislation must empower the CFTC to oversee the crypto spot market, ensuring transparency and protecting consumers from fraud and manipulation.” Because, you know, nothing says “trustworthy” like a bunch of digital coins. 🤷‍♂️

Handing over the regulatory reins to the CFTC is like giving the car keys to the teenager who just got their license—generally supported by the crypto industry and a few Republican lawmakers. In 2022, Representatives Glen Thompson and Tom Emmer reintroduced the Digital Commodity Exchange Act, which would have authorized the CFTC to register and regulate the digital asset sector. Because who doesn’t want more government oversight in their lives? 🙄

Meanwhile, former CFTC Chair Chris Giancarlo was busy trying to convince the Senate Agriculture Committee that the CFTC should be the one to oversee spot crypto markets. As if the Senate has nothing better to do! And let’s not forget President Trump, who is reportedly considering giving the CFTC the keys to the crypto kingdom. Talk about a plot twist! 🎭

Wrestling Control from the SEC

Currently, the SEC is the one calling the shots in the spot crypto markets. They’ve ruled that Bitcoin (BTC) and Ether (ETH) are not securities, but most other crypto assets? Well, they’re still figuring that out, much like how we all try to figure out our taxes every April. 📅

In early 2023, former SEC Chair Gary Gensler made headlines by declaring that all cryptocurrencies except Bitcoin fall under the agency’s purview. “They’re securities because there’s a group in the middle and the public is anticipating profits based on that group,” he said, sounding like a professor trying to explain a complicated theory to a room full of confused students. 🤔

Gensler even investigated whether Ether should be deemed a security before dropping the case entirely in June 2024, possibly to avoid another embarrassing defeat. Because who wants to be the person who loses to a digital coin? Not Gensler, that’s for sure! 😅

Nevertheless, the SEC has been a bit more lenient with crypto asset regulation since Trump took office. In February, the agency’s newly created Crypto Task Force met with several firms to clarify broker-dealer and staking rules, among other priorities. Because nothing says “we care” like a task force! 🙌

2025-02-19 21:11

Crypto Chaos: Coinbase’s Bold Move to Dethrone the SEC! 😱💰

Wrestling Control from the SEC

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