Coinbase cryptocurrency exchange called on Congress to create a special regulatory body to oversee the market of virtual money. “The Federal government and so is sufficient regulatory authority,” said Mike Lempres (Mike Lempres), head of risk and legal issues of the exchange.
However, Lempres insists that all trading participants must have a clear idea of where the end of the mandate of one body and where it should act the other. During testimony at a hearing of the house Committee on financial services, he stressed that Coinbase is under the jurisdiction of many agencies and authorities at the Federal level, including the Commission on securities and exchange Commission (SEC), Commission on commodity futures trading (CFTC), Federal trade Commission and the Network to combat financial crimes (FinCEN). In addition, Coinbase must comply with the licensing agencies in 38 States.
Lempres noted that the coordination to the market much more than a new regulatory institution. For example, to decide who will control the ICO:
“In this situation, it is appropriate to recall the parable of the seven blind men and the elephant. Each body determines the tokens in its own way:
The SEC claims that these assets are securities;
The CFTC says that tokens is a commodity, except when they are equivalent to securities;
According to Tax service, is the property;
FinCEN considers tokens of money, and finally
the other bodies also look at the tokens through the prism of their own position.”
Reputation Coinbase including those built on legitimate exchanges. Lempres reminded that GDAX trades only Bitcoin, Cash Bitcoin, Litecoin, Ethereum, and partly because these assets were recognized currencies, not securities. “We do not hold a listing of tokens, potentially being securities, since we do not have an appropriate license. We can’t risk unknowingly trading assets, which later will be equated with securities”, — he added.
It is unknown how long the exchange will adhere to the given vector, but the above factor is still the key to Coinbase. Earlier it was reported that the token expands market presence Ripple will join the list of offers to trade, however, the representatives Coinbase has denied these rumors.