At DC Hearing, Coinbase Calls Out Federal Regulators For ‘Harming Innovation’

At DC Hearing, Coinbase Calls Out Federal Regulators For ‘Harming Innovation’

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The Subcommittee on Capital Markets, securities and Investments discussed the main issues related to cryptocurrencies and Initial Coin Offering (ICO) in a recent hearing, entitled “the Study of cryptocurrencies and markets ICO”, held March 14 in Washington.

At the hearing, the Subcommittee discussed ICOs and Cryptocurrency, the potential benefits for the economy, the provision of legal support to its investors and the regulatory approach.

In his testimony, Mike Lempres, General counsel and officer of risks Coinbase wallet and Cryptocurrency Exchange, said that huge potential can only be achieved through responsible regulation.

However, at this stage of the regulatory system of the United States “harm healthy innovation” because of the lack of understanding of what should be allowed and what should not be, and should be considered as digital assets or as securities, commodities, property or money.

For Empresa regulatory authorities of the United States, such as the Commission on Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), the Financial Crimes Enforcement Network (FinCEN) and the Federal Trade Commission (FTC)

According Lempres, SEC, which is responsible for operations with securities, sees crypto as securities, and the CFTC is fully controlled. FinCEN has all the powers in respect of Know Your Customer (KYC) and Anti-Money Laundering (AML) and believes that the money is in cash. Meanwhile, according to the IRS, digital coins should be considered as property for the tax regime. According to Lempres, it is a very “lack of coordination”.

Answering a question from the chairman of the Subcommittee Bill Huizenga, Lempres said that Coinbase cannot begin to support the ICOs before the adoption of the necessary rules.

“We do not support any [ICO] currently, because we are not sure what is normative [treatment] … We’re waiting for the dust to be held between CFTC and SEC, before we selectively participate in the support of ICOs.

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