Coinbase Chief Policy Officer: As long as the legislator provides a clear direction for the encryption industry, Coinbase is willing to register a broker with the US SEC

According to reports, Faryar Shirzad, the chief policy officer of Coinbase, said that as long as the legislator provided a clear direction for the cryptocurrency industry, Coinbase would be willing to register its dormant broker with the United States Securities and Exchange Commission (SEC). Shirzad also said, “Every encryption token is not a security. The debate about whether every encryption token is a security is very Americanized, so it may stifle innovation.”

Interpretation of this information:

In the world of cryptocurrency, there has been a constant debate on whether every encryption token should be considered a security. However, Faryar Shirzad, the chief policy officer at Coinbase, suggests that this argument is primarily Americanized and may hamper innovation. According to Shirzad, not all encrypted tokens correspond to securities, and this classification could change depending on the regulation provided.

Coinbase, the largest cryptocurrency exchange in the U.S, has expressed a desire for the cryptocurrency industry to have clear legislation. The company is not interested in expanding its business through loopholes nor waiting for others to do so before they take action. They want the United States Securities and Exchange Commission (SEC) to provide clear direction for the industry, which Coinbase is then willing to follow. This will undoubtedly help regulate the industry and address any concerns that the public may have.

Shirzad’s comment about Americanization stems from the belief that the U.S tends to limit innovation when it comes to cryptocurrency. Despite that, cryptocurrency is not bound to any borders and is accessible to anyone with an internet connection. However, the industry’s growth may suffer if it is based on fear and hesitation, where each token is presumed to be a security. Therefore, Shirzad suggests that a clear direction for the industry may help in simplifying the classification of cryptocurrency and innovation alike.

In conclusion, cryptocurrency is an evolving industry that is yet to be regulated in a clear and concise manner. Companies such as Coinbase seek clear direction from the SEC and want to avoid any unnecessary loopholes that may arise. Shirzad suggests that not every encrypted token corresponds to a security, and labelling each token as such may hinder innovation. Therefore, it is necessary to develop legislation that promotes transparency and growth within the industry.