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   321

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 Acquires Earn.com Project

Earn’s co-founder and CEO will join Coinbase as the company’s first Chief Technology Officer
17 April 2018   154

On April 16, Coinbase cryptocurrency exchange has announced the acquisition of another startup they found promising. Earn.com is a projects which is developing an app which should allow senders to pay users in digital currency for replying to emails and completing tasks.

A week ago we reported about the launch of Coinbase Ventures, whose goal is to help the most compelling companies to flourish, and yesterday we found out that Coinbase buys the open source, decentralized application and wallet, Cipher Browser.

Coinbase and Earn collaborationCoinbase and Earn collaboration

Moreover, along with Earn.com acquisition, Coinbase also welcomed Earn’s co-founder and CEO, Balaji Srinivasan, who will join Coinbase as the company’s first Chief Technology Officer (CTO).

Over the last several years, the primary way most people have obtained cryptocurrency is through buying it, with many of these transactions facilitated by Coinbase. With this acquisition, we allow users to also earn crypto by doing things they already know how to do — like replying to emails and filling out surveys.
 

Earn.com announcement

For the users of Earn.com, everything will continue as before in the short term, with one exception as Earn.com has put the token launch on the back burner and plans to focus on integrating with Coinbase’s infrastructure and scaling up the service.