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- New proposal by a US Senator may become a safe harbor for crypto exchanges.
- The move comes following SEC’s Coinbase investigations.
- SEC is currently involved in a lawsuit against Ripple Labs.
Senate Bill To Save The Day?
While countries like El Salvador are admiring virtual currencies like Bitcoin, several other nations want to regulate potentially “harmful” digital assets. Securities and Exchange Commission (SEC), the notorious US regulator, marked crypto territory as the “Wild West” in 2021. But a United State Senator, Bill Hagerty, has put a proposal on the table that can save the day for cryptocurrency exchanges.
According to the bill, if the SEC lists any cryptocurrency exchange involved in trading unregistered security, then it would get a couple years grace period to get registered. In case the bill is passed and implemented, the US regulator can still mark any asset as unregistered security if it falls under the Howey Test.
Commodity Trading and Futures Commission (CFTC) can have their say in such matters. They are trying harder to get a better control over virtual assets. On the other hand, SEC Chair, Gary Gensler, is sticking to the point that several crypto assets are “securities” to keep their stance crystal clear.
The news comes following the ongoing Coinbase investigations by the SEC. The financial watchdog says that the exchange is illicitly trading different assets falling under the securities category. The US regulator sent a subpoena during August 2022 to summon the issue in court.
Recently, the crypto exchange received another blow when a company sued them for a 350 Million USD patent infringement lawsuit. Earlier this year when crypto winter started, the company halted price notifications. Customers were not very happy with the move.
The crypto market boomed after Western countries imposed sanctions on Russia following their anarchist approach towards Ukraine beginning 24th February, 2022. Many leaders believed that the nation might evade sanctions via digital assets, leading them to go hard on crypto exchanges around the globe.
Bill Hagerty’s proposal might work like wonders for digital asset exchanges considering the harsh approach of the notorious watchdog.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
