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Coinbase’s willingness to register dormant broker rests on clear legislative direction for crypto

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According to reports, Faryar Shirzad, the chief policy officer of Coinbase, said that as long as the legislator provided a clear direction for the cryptocurren…

Coinbase’s willingness to register dormant broker rests on clear legislative direction for crypto

According to reports, Faryar Shirzad, the chief policy officer of Coinbase, said that as long as the legislator provided a clear direction for the cryptocurrency industry, Coinbase would be willing to register its dormant broker with the United States Securities and Exchange Commission (SEC). Shirzad also said, “Every encryption token is not a security. The debate about whether every encryption token is a security is very Americanized, so it may stifle innovation.”

Coinbase Chief Policy Officer: As long as the legislator provides a clear direction for the encryption industry, Coinbase is willing to register a broker with the US SEC

Interpretation of the news:


The Chief Policy Officer of Coinbase, Faryar Shirzad, recently stated that Coinbase is open to registering its dormant broker with the United States Securities and Exchange Commission (SEC) provided that there is clear legislative direction for the cryptocurrency industry. The statement indicates that Coinbase is willing to comply with regulations and wants a well-defined regulatory framework to operate within.

Currently, the issue of regulation in the cryptocurrency industry remains a thorny one, marked by a lack of consensus on what constitutes a security token. Shirzad also weighed in on the debate, stating that not all encryption tokens should be deemed securities. This debate, he noted, is uniquely American, and over-regulation could harm innovation in the industry.

Coinbase is a major player in the cryptocurrency industry, and its interest in SEC registration could signal a willingness by other players to follow suit. The SEC has been cracking down on unregistered brokerage activities in the crypto space, and Coinbase’s decision to register its dormant broker could prevent further legal issues. However, this decision to register might still need to go through legal processes and might require a few changes to their business model.

The call for clear legislative direction in the crypto industry seems to fall in line with increased regulatory scrutiny of the sector. The SEC has been vocal on its desire to regulate the industry, citing investor protection concerns. The agency is expected to make numerous decisions in the future, and crypto firms such as Coinbase will be watching their rulings closely.

In conclusion, Coinbase’s openness to SEC registration, given clear regulatory guidelines, serves as an invitation for other crypto firms to act similarly. As the crypto industry continues to grow, it is best that clear regulatory frameworks that protect investors and foster innovation be set in place. Overall, this development shows that firms in the crypto space are willing to comply with regulations, and it is ultimately a positive step forward in the industry’s maturation.

In summary, the keywords that best describe the message are: Coinbase, SEC registration, legislative direction, cryptocurrency, security, and innovation.

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