“Dosis sola facit venenum” – This Latin phrase is attributed to the 16th century Swiss physician and alchemist nicknamed Paracelsus. It means “Only the dose makes the poison”. And when we talk about regulation in cryptocurrencies, it is often a question of dosage and cursor. On this subject, the CEO of Coinbase knows a ray of it, he who works openly for a clear American regulatory framework. But who would benefit whom? To centralized platforms and its customers? To users of decentralized protocols? Start of response in the series of tweets from Brian Armstrong.
Cryptos, digital goods? Brian Armstrong says yes
Last weekend, the leader of the San Francisco cryptocurrency platform wanted to speak on the oh so hot topic of the regulation of cryptocurrencies in the land of Uncle Sam. He has, for example, greeted Sunday afternoon the parliamentary work of two members of Congress in a message posted on Twitter.
He made reference to Debbie Stabenow and to John Boozman. The first is a Democratic senator from Michigan, while the second is a Republican senator from Arkansas. Like what, crypto can break down partisan barriers. But back to our subject !
The project of Stabenow–Boozman law – named after the two senators – concerns cryptocurrencies and their supervision by the Commodity Futures Trading Commission (CFTC). This independent federal agency is responsible for overseeing and regulating the commodity exchanges where raw materialsmothers.
And if the cryptocurrencies were finally vulgar “digital goods” ? It’s’idea original of these senators and it does not please the proponents of regulation by the Security and Exchange Commission (DRY). Brian Armstrong therefore takes a position in a legal tussle between two federal agencies that each claim their legitimacy to regulate cryptocurrencies.
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Sam Bankman-Fried and Brian Armstrong on the same wavelength?
On this subject, the CEO of Coinbase is very clear in his message:
“It should be clarified, for the record, that DeFi should be protected in any legislation aimed at regulating exchanges and centralized depositories. Thanks to Debbie Stabenow and John Boozman for trying to get it right! »
The term “cryptocurrency” understood here as assets bought or sold in cash – spot in English – and does not apply to all financial derivative products in the sector. In addition, the boss of Coinbase wished to react to the controversy who agitated the small microcosm of Twitter this weekend about the suggestions of Sam Bakman-Fried.
Crypto issues that go beyond the financial framework
Indeed, the latter had published the previous week a post on the blog of FTX where he exposed his vision of the regulation of the DeFi sector. This document triggered an outcry and even gave rise to a focus of the young CEO.
For his counterpart Brian Armstrong, the regulation of DeFi is also necessary and SBM is right to call for it. But the challenges of regulation do not stop there. The boss of Coinbase specifies that there is “the future of America and the free world”. He recalls that the United States has “missed 5G and semiconductors” and that no country can afford to “let go of his cryptocurrency companies”.
The business owners are definitely at the heart of debates related to regulation and do not intend to leave this subject to politicians alone. Brian Armstrong understood that a too much regulation coercive would have negative effects on the sector and therefore calls for a good regulatory mix. However, let us recognize that so far, the contours of this regulatory framework remain unclear. The only certainty is that all the giants of the sector are seeking to comply with the few existing laws on the subject.
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