Coinbase exchange dismissed all the allegations and confirmed that hiring of former government officials was aimed at protecting the US crypto investors.
Coinbase is a top US-based Nasdaq-listed crypto firm which is known for highly regulated crypto trading services for retail as well as institutional investors. Despite the highly regulated crypto services, the United States Securities and Exchange Commission (SEC) sued Coinbase for providing unregistered securities offerings and running an unregistered national securities exchange.
Recently the US senator Elizabeth Warren claimed that the Coinbase crypto exchange hired multiple former government officials to impede the progress of regulations for crypto assets in the US jurisdiction.
In response to such allegations, the Coinbase team penned a letter to respond against Warren’s allegations and confirmed that Coinbase continues to responsibly and actively advocate for regulatory measures in the crypto industry.
Furthermore, Coinbase asserted that the exchange always succeeded in providing a better level of crypto & fight against illicit crypto activities.
On the former government officials hiring, Coinbase confirmed that the Coinbase team aimed to save the US crypto Investors with the use of high-level experienced talents.
In the first quarter of this year, following the bankruptcy of crypto-friendly banks & many crypto firms, the majority of the well-established crypto companies experienced intense pressure from the US regulators, despite the fact that no banks collapsed because of crypto companies.
Because of the hostile regulatory environment in the US, the majority of the crypto companies, including Coinbase, showed a high degree of intention to expand their services to non-US jurisdictions.
Recently few reports claimed that legal conflict between Coinbase & the SEC body may raise some issues for the approval of Bitcoin spot ETF applications.
Currently, a dozen fund managers are in queue to get regulatory approval from the US SEC and the majority of these applications mentioned Coinbase as a custodian for the custody of Bitcoin.
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