SEC’s Moderate Approach to Cryptocurrencies Under Trump

With Donald Trump taking office, top-level institutions like the SEC are adopting a moderate stance towards cryptocurrencies.

Currently, the SEC has withdrawn its lawsuits against several platforms, including Coinbase and Robinhood. In response, Coinbase is urging the SEC for clearer regulations on cryptocurrencies.

Coinbase, the largest cryptocurrency exchange in the U.S., has requested the SEC to clarify its jurisdiction over digital assets, as reported by The Block.

In its communication, Coinbase outlined several steps the SEC could take regarding cryptocurrencies, including:
– Distinguishing cryptocurrencies from securities.
– Consulting with the U.S. Congress regarding regulatory uncertainties.
– Accepting that secondary market transactions of cryptocurrencies should not be classified as securities.
– Allowing the tokenization of traditional securities.

Faryar Shirzad, chief policy officer at Coinbase, stated:
> “After four wasted years in which Congress, the administration, and regulators appeared intent on causing confusion, everyone understood the urgency to provide clarity in these markets. What we always want from the institution is the opportunity to be heard and for all stakeholders to participate in the deliberative process on how to regulate these markets and provide clarity to market participants.”

Coinbase has stressed the need for clear regulations to keep pace with the SEC’s changed approach towards cryptocurrencies under the Trump administration, emphasizing the importance of rules to support market growth and stability.

*This is not investment advice.