The clash between Coinbase’s bitcoin exchange and the U.S. Securities and Exchange Commission (SEC) underscores the need for clearer rules for the cryptocurrency industry. This was stated by former CFTC chair Christopher Giancarlo, according to CoinDesk.
In his view, the existing regulation is outdated and “applies unevenly.” In light of the Coinbase incident, Giancarlo also stressed the importance of dialogue between industry participants and regulators.
“For this innovation [cryptocurrencies], it is important that we do not apply 90-year-old statutes,” he noted.
On September 8, Coinbase said that the SEC warned the company of legal action in the event of launching the crypto-savings accounts Lend.
Brad Garlinghouse, CEO of Ripple, backed the Bitcoin exchange and hinted at possible cooperation between the two organisations. In December 2020 the regulator accused the California fintech firm and its executives of unregistered sale of securities under the guise of XRP tokens worth $1.3 billion.
Later, the SEC amended the suit, focusing on the actions of Garlinghouse and Chris Larsen.
Earlier, the crypto-lending platform BlockFi said that the New Jersey Bureau of Securities postponed the start of the ban on opening new BlockFi Interest Accounts (BIA) for state residents from September 2 to September 30.
Regulators from Alabama, Texas and Vermont also filed similar claims against BlockFi.
Earlier this month, Giancarlo left the board of the crypto-lending platform four months after his appointment. He will continue to work with it as a consultant.
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