No Need For New Crypto Regulation, Coinbase Says

Coinbase's Chief Lawyer considers that the federal government has all the necessary powers and mechanisms to regulate the crypto-currency industry
15 March 2018   645

At a hearing in the US Congress, the chief lawyer of the American company Coinbase, Mike Lempres, said that the federal government has all the necessary powers and mechanisms to regulate the crypto-currency industry, and there is no need to create a new department. This is reported by Forbes.

Nevertheless, Lempres noted that the authorities should determine what powers each supervisory authority has over the industry, since Coinbase already reports to the Securities and Exchange Commission (SEC), and to the Commodity Futures Trading Commission (CFTC) and before the Federal Trade Commission, and before the Federal Trade Commission and the Financial Crimes Enforcement Network (FinCEN). In addition, the company also must comply with the requirements of licensing authorities in 38 states.

Each regulator, according to Lempres, must choose a specific direction in the crypto-currency sphere and take it under control.

Today’s environment calls to mind the parable of the blind mice and the elephant - each agency looks at tokens from its own narrow perspective:

  • the SEC says these assets, particularly ICO’s, are probably securities;
  • the CFTC says tokens are commodities, unless they are securities;
  • the IRS says they are property;
  • FinCEN says tokens are money; and
  •  other agencies see tokens through their own lens.

Mike Lempres

Chief Lawyer, Coinbase

Lempres also explained why only Bitcoin, Litecoin, Ethereum and Bitcoin Cash are traded on GDAX. The reason is that these digital assets are not exactly securities, for which Coinbase does not have a licence. The list of available crypto-currencies is limited, since there is a risk that the Khovi test can assign the status of securities to other tokens.

Congressman from the Democratic Party of California Brad Sherman in response to the demands of a representative of Coinbase said that crypto-currencies can not be securities or goods, because it is fraud.

Coinbase CEO to Launch Charity Crypto Fund

At the moment, the fund has already raised $ 3.5 million, of which $ 1 million was personally invested by Armstrong
28 June 2018   279

Brian Armstrong, co-founder and CEO of Coinbase, announced the launch of a charitable cryptocurrency fund called GiveCrypto. Armstrong plans to attract $ 1 billion in the next two years. This is reported by Brian himself via Twitter.

According to Armstrong, having managed to earn big money on bitcoin and other crypto-currencies, community members should help the needy all over the world, and not position themselves as cool guys in Lamborghini. This will help to open new scenarios for the use of cryptocurrency, and, undoubtedly, will promote its further popularization.

He also noted that donations in the cryptocurrency can reach people directly, eliminating the likelihood of corruption and abuse.

Cryptocurrency is unique in that it can be used to send small amounts of money anywhere in the world, in real-time directly to an individual in need — they just need a mobile device with an internet connection. With distribution of aid to foreign countries, high fees and corruption are unfortunately common; cryptocurrency is a way of circumventing both.
 

Brian Armstrong

CEO, Coinbase

To date, the fund has already raised $ 3.5 million, of which $ 1 million was personally invested by Armstrong. Also reported that the contribution of more than $ 1 million was made by the executive chairman and co-founder of Ripple Chris Larsen.

Other contributors are Chinese mining giant Bitmain and venture capitalist Fred Wilson; they contributed more than $ 100,000 each.

GiveCrypto plans to start helping those in need after the amount of donations reaches $ 10 million, but the long-term goal of the fund is $ 1 billion over the next two years.