With the inauguration of Donald Trump, the approach towards cryptocurrencies by top-level institutions like the SEC has shifted towards a more moderate stance.
While the SEC has decided to withdraw its lawsuits against major platforms such as Coinbase and Robinhood, Coinbase is now urging the SEC to provide clearer regulations on cryptocurrencies.
As the largest cryptocurrency exchange in the United States, Coinbase has formally requested the SEC to define its jurisdiction over digital assets, as reported by The Block.
In its recommendations to the SEC, Coinbase has proposed several key actions to be taken, including the distinction of cryptocurrencies from securities, seeking guidance from the US Congress on regulatory uncertainties, and acknowledging that secondary market transactions of cryptocurrencies should not be classified as securities.
Additionally, Coinbase has suggested that traditional securities should be allowed to be tokenized in order to promote innovation in the market.
“After four years of uncertainty and confusion, there is a pressing need for clarity in the regulatory landscape surrounding cryptocurrencies. We urge all stakeholders to engage in a collaborative effort to establish clear rules and guidelines for market participants,”
Recently, Coinbase has stressed the importance of establishing clear regulations in light of the SEC’s evolving stance on cryptocurrencies during the Trump administration. These regulations are seen as essential for supporting the growth and stability of the crypto market.
*Please note that this content does not constitute investment advice.