Coinbase already agrees with a SEC proposal, the company Clo argues

Coinbase already agrees with a SEC proposal, the company Clo argues

Yesterday the SEC proposed new rules for crypto companies that act as qualified storage for institutional funds.

The advance for this change of law is due to the recent mistakes of cryptoplate forms that protect the user's assets from both cyber attacks and from bankruptcy. The SEC argues that the ruthless financial behavior of FTX, Celsius and the like could destabilize the economy as a whole if it is not controlled.

Some crypto platforms have wiped off the message and explained that only a few or no adjustments to their business model would have to be made to comply with the prescription currently in progress.

measures already taken to protect the funds

In an interview with Bloomberg, Paul Grewal, Clo von Coinbase, said that the company not only complies with the proposed changes to the law on qualified storage, but is also a role model for other cryptoplatt forms.

"I think when it comes to coinbase, we see that SEC officials realize that Coinbase works in a qualified way. In many ways, it is about bringing the rest of the industry to the standard that Coinbase has set itself."

Grewal followed with a similar explanation on Twitter, in which he praised the SEC for its initiative and the crypto industry reminded that nothing has yet been carved in stone.

Coinbase Custody Trust Co. is now a qualified custodian bank and will be a qualified custodian tomorrow. Today's proposal of @secgov does not change this fact. While we praise the second to follow the right procedure for the public regulations, today's proposal is exactly that - a proposal.

- paulgrewal.eth (@iampaulgrewal) 15. February 2023

other business model

While he founded the SEC's proposal, the chairman of the agency, Gary Gensler, said that the step was necessary due to structural problems with the way in which crypto platforms are traditionally necessary with customer money.

"Do not make a mistake: Based on the way in which cryptoplate forms work in general, investment advisors cannot rely on you as a qualified storage."

As reported by Bloomberg, the new legal initiative would ensure that crypto platforms give assurances that the assets of the money administrator customers are separated from the funds required for the operation of the platform, which guarantees that the funds are secure if the platform itself goes bankrupt.

spokesman for Coinbase argued that the company works differently than competing platforms, a statement that is now repeated by her clo.

Coinbase is not entirely safe from possible regulatory measures of the SEC and others.

For example, the support of USDC through Coinbase could attract a lot of fire in the near future in view of the recent regulatory measures against margins.

.