The U.S. regulators are currently investigating FTX.US, Coinbase and Binance in the wake of the collapse of the FTX global crypto exchange. 3603 Total views 51 Total shares Listen to article 0:00 News Coinbase CEO Brian Armstrong was not delighted with the news about the United States regulators looking into FTX.US along with Coinbase and Binance.US in the wake of the FTX crisis.
Armstrong said that the enforcement action against U.S.-based companies for the irregularities committed by an offshore crypto exchange that fall out of the jurisdictions of U.S. regulators makes no sense.
Armstrongs comments came in response to Senator Elizabeth Warrens call for aggressive enforcement in the wake of the FTX crisis. The Coinbase CEO blamed the Securities and Exchange Commission (SEC) for the lack of regulatory clarity in the U.S.,which he believes drove out 95% of trading activity to offshore exchanges.
https://t.co/0HxlRiI6Sy was an offshore exchange not regulated by the SEC.
The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore.
Punishing US companies for this makes no sense. Brian Armstrong (@brian_armstrong) November 10, 2022
Ripple CEO Brad Garlinghouse, who is currently involved in a securities lawsuit with the SEC, cited the example of Singapore. He said that companies have zero guidance on how to comply in the U.S., while in Singapore, there is a clear licensing framework and tax economy, which makes it much easier to comply.
Compare that with Singapore which has a licensing framework, token taxonomy laid out, and much more. They can appropriately regulate crypto b/c they’ve done the work to define what good looks like, and know all tokens arent securities (despite what Chair Gensler insists) 2/2 Brad Garlinghouse (@bgarlinghouse) November 10, 2022
The collapse of the worlds third-largest crypto exchange finally attracted the attention of the U.S. regulatory bodies. According to a recent report, the U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) are investigating the exchanges U.S. subsidiary.
As per the report, the regulators are investigating whether some of FTXs crypto lending products qualify as securities. Along with that, regulators are also looking at its ties with the parent company headquartered in The Bahamas.
Related: FTX and Binances ongoing saga: Everything thats happened until now
FTX was one of the largest crypto exchanges with millions of customers across the globe. The exchange has raised billions in multiple funding rounds up until January 2022. Even at the peak of crypto contagion in the second quarter, FTX looked unscathed and even bailed out many lending firms.
However, as of today, the Binance deal fell apart within 48 hours of the announcement. There are fresh accusations of mismanagement of users funds and using their own native token, FTX Token (FTT), for collateral. The liquidity crisis is so grave that SBF reportedly asked investors for $8 billion in emergency funding. #Coinbase #Cryptocurrencies #Business #Binance #Regulation #Sam Bankman-Fried #FTX Token #FTX Related News The biggest crypto heists of all time Binances victory over FTX means more users moving away from central exchanges Binance tops up SAFU fund at $1 billion amid price fluctuations Alameda Research FTT token transfer from September fuels wild speculations Bitcoin sinks under $16K as FTX insolvency fears turn into contagion
