SEC will not fully regulate the cryptocurrency industry as not all digital assets meet the definition of securities. This was stated by Brian Armstrong, CEO of Coinbase.

“Obviously Bitcoin or Ethereum is a commodity and probably needs to be regulated. CFTC. If the team wants to raise funds for the company through security tokens, these are securities and are the prerogative of the SEC. It would be great to clarify this issue, Armstrong noted.

According to the senior executive, stablecoins should be the responsibility of the US Treasury Department. He added that there are art-based cryptocurrencies that do not fit into any of the above categories and should probably not be subject to surveillance.

The CEO of Coinbase emphasized that regulation requires a balance between protecting investors and keeping innovation open.

“We don’t want the government to be in a position where it chooses winners and losers. Simply because legal does not seem like a good investment. We all want to avoid fraud and are ready to work with the government […] But only wealthy people who meet the criteria for accredited investors may be in danger of investing.”Armstrong explained.

The top manager also did not rule out that imbalance could lead to groundbreaking innovations and the displacement of projects. At first, they may not meet expectations, so the government will never allocate funds to them.

Recall that on March 9, US President Joe Biden signed a decree on the coordination of federal institutions in the regulation of cryptocurrencies.

At the end of March, Senators Cynthia Lummis and Kirsten Gillibrand unveiled details of a bill designed to clarify the regulation of cryptocurrencies. The document clarifies, among other things, the definition of a broker in terms of infrastructure and provides for the creation of a specialized supervisory body.