© Reuters “Law enforcement regulation is terrible,” says Coinbase CEO
- Coinbase (NASDAQ:) CEO says regulation by enforcement has a terrifying chilling effect.
- Bitfury’s Brian Brooks has attacked the US SEC over litigation management of cryptocurrency projects.
- The SEC v. XRP case states that no contract exists between the company and the XRP investors, per the requirements of the Howey test.
Brian Armstrong, CEO of leading cryptocurrency exchange Coinbase, claimed on Twitter (NYSE:) early today that “regulation by law enforcement has a terrible chilling effect.”
One of the strongest policy arguments about cryptocurrency is that it is a matter of national security. The US missed out on semiconductors and her 5g, which are now mostly manufactured offshore. I can’t afford to take virtual currency abroad. (same in any country)
— Brian Armstrong (@brian_armstrong) September 20, 2022
Armstrong issued a statement as the regulator pondered ways to compel Web3’s startups to abandon the United States and settle elsewhere.
In Armstrong’s words:
One of the strongest policy arguments about cryptocurrency is that it is a matter of national security. The US missed out on semiconductors and her 5g, which are now mostly manufactured offshore.
Armstrong, founder of the largest US-based cryptocurrency exchange, said he could not afford to take cryptocurrencies offshore. Crypto is too important to America and the free world, so he promised to fight for everyone’s sake to ensure that crypto would succeed in the United States.
Similarly, Bitfury CEO Brian Brooks last month attacked the U.S. Securities and Exchange Commission (SEC) over litigation management of cryptocurrency projects.
Brooks argued that regulators kept quiet about the rules and people launched projects, launched companies, and filed lawsuits after listing their tokens.
Blockchain company Ripple Labs Inc (XRP), for example, has been in a multi-year legal battle with the SEC after regulators filed a lawsuit against the company and two executives. The SEC claimed the company raised more than $1.3 billion through an unregistered digital asset securities offering.
Ripple claimed that there was no contract and no joint venture between the company and XRP investors, per one of the Howey test requirements.
According to Ripple, the SEC was unable to identify the investment contract and “fails to meet one prong of the Supreme Court’s Howey test.”
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