While Coinbase Strengthens Its Influence In The US, Senators See “Big Opportunity” In Chinese Restrictions
In this article, we will talk about how one of the largest cryptocurrency exchanges becomes more and more influential in the United States. We will also tell you why American regulation representative sees great opportunities in the newest Chinese restrictions.
Exchange Will Offer US Officials Cryptocurrency Rules
In the past few weeks, there have been rumors that cryptocurrency exchange Coinbase is developing a project to inform federal regulators about how it controls the crypto industry.
The information came after Coinbase announced the rejection of previous plans to offer a cryptographic lending product Lend. According to the Securities and Exchange Commission (SEC), this product violates securities laws. The SEC cited two US Supreme Court precedents (the Howie and Rives cases) in a ban, arguing that Lend appears to violate securities laws. Some lawyers explain that the regulator can compare the loan with shares or certificates of interest. Those are exactly the securities that are in the sphere of responsibility of the SEC.
Coinbase has been working hard and long to implement a project of frameworks and tools that will help standardize exchanges’ approaches to crypto listings and products. At least this applies to the United States.
Coinbase is one of the founders of the Crypto Rating Council. As a reminder, this 2019 initiative set out to develop a common understanding of how closely a particular cryptocurrency resembles security.
The group rated the cryptocurrency on a scale of 1 to 5. 1 means it is not a security (like bitcoin), and 5 means what is a security. CRC has not made any claims about any cryptocurrencies that fit the description.
Coinbase also published an open-source tech platform last year. The platform is intended for crypto developers. Projects implementing this structure are compatible with Coinbase listing and technical server for trading if the exchange approves these cryptocurrencies for their platform.
Coinbase Will Allow US Clients To Earn Cryptocurrency Salaries
The largest US cryptocurrency exchange has launched the Get Paid in Crypto service. Now American residents will be able to automatically receive a salary in any cryptocurrency available on Coinbase.
Customers can also receive payments in USD. The finances will be stored directly in the user’s exchange account. They can be spent using a Coinbase debit card. Among other things, the exchange will provide the ability to automatically convert salaries to USDC or DAI, as well as receive interest for storage on the trading floor.
The exchange announces partnership agreements with several companies including Fortress Investment Group, M31 Capital, Nansen, and SuperRare Labs. This will enable employees across the creator economy and financial services to enter the future of payroll.
Great opportunities from Chinese restrictions
The Central Bank of China recently banned all cryptocurrency-related transactions. The ban includes offshore exchange services. The People’s Bank of China stated on the official website that cryptocurrencies, including Bitcoin and Tether, are not fiat currencies and cannot be traded.
Pat Toomey, the main Republican on the Senate Banking Committee, believes the restrictions from China will benefit the United States. Tum also stated that economic freedom leads to a higher standard of living for all citizens. “These are great opportunities for the United States. It is also a reminder of our huge structural advantage over China,” the senator added.
Bad news from China made investors withdraw huge amounts of their assets from Asian centralized exchanges. Users switch activities to DEX-exchanges, which do not require documents, phone numbers, and do not block personal accounts due to “government regulation”.
Throughout the history of cryptocurrencies, centralized exchanges have been the only way to exchange digital assets, but the aforementioned DEX exchanges have diluted the market with the ability to exclude intermediaries.
Markets have definitely not yet recovered from the latest Chinese news, but attempts to adapt to the new life on the part of various market participants are already underway. We believe that the “Chinese restrictions” will have an impact on the entire crypto market for some time. However, there are also reasons for joy. As long as major exchanges continue to develop products and offer a cooperation initiative to regulators, you can be sure in the future of cryptocurrency.