Crypto regulation is something that the US regulators are still figuring out. But Coinbase has identified a big problem in the same. The company’s CEO said, “We have 53 regulators in Just One country, the US”. And this is why the exchange has been pushing for just 1 regulator in the crypto sector. At present, they are having meetings with so many regulators that it doesn’t seem logical how a company will handle all of them.
The US has too many regulators
The regulators are authorities, but they will also have a different understanding of what’s right and wrong, even by the law. Or it could be about the things/rules that one should follow. At present, there are over 53 regulators in the US, so it is practically impossible for the company to convince everyone. And this is why Coinbase is trying to push for having just one regulator. In the recent earnings call for Q3, the CEO of Coinbase said that they had a meeting with SEC Chairman Gary Gensler, which was very productive.
While the regulators in the US have all different kinds of roles, it isn’t easy to work with everyone. So, if just one person would help companies make sure they stay on the right track, it would be helpful. If this happens, it will also help companies and crypto exchanges to focus more on innovation and tech rather than the laws.
In fact, the CFO of the company also said that having a single regulator who understands the tech and helps regulate the sector properly will be very helpful. And if the traditional financial service regulators are involved, things will just become inefficient.
Regulation is very difficult
It has become clear that proper laws don’t exist right now to regulate the crypto space. So, if the authorities don’t take any step, things will remain the same for exchanges. This is why Coinbase has been pushing for a single regulator with whom they can work effectively. Regulation has been very difficult because the government is not doing anything specific for crypto, which is required.
What are your thoughts, on the US having too many regulators? And do you think that Coinbase wants to have only one fair? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.