Coinbase Exchange rejected all allegations and confirmed that the hiring of former government officials was intended to protect US crypto investors.
Coinbase is a US-based, Nasdaq-listed crypto company known for its highly regulated crypto trading services for both retail and institutional investors. Despite its highly regulated crypto services, the US Securities and Exchange Commission (SEC) has charged Coinbase with conducting unregistered securities offerings and operating an unregistered national securities exchange.
Recently, US Senator Elizabeth Warren alleged that the cryptocurrency exchange Coinbase hired multiple former government officials to hinder the progress of crypto asset regulation in the US jurisdiction.
In response to such allegations, the Coinbase team has written a letter to respond to Warren’s allegations and affirmed that Coinbase continues to responsibly and actively advocate for regulatory action in the crypto industry.
Furthermore, Coinbase claimed that the exchange has always managed to provide a better level of crypto and combat illegal crypto activities.
Regarding the recruitment of former government officials, Coinbase confirmed that the Coinbase team aimed to save the US crypto investors with the help of high-level experienced talents.
In the first quarter of this year, following the failure of crypto-friendly banks and many crypto companies, the majority of established crypto companies experienced intense pressure from US regulators, despite no banks failing due to crypto companies.
Due to the hostile regulatory environment in the US, the majority of crypto companies, including Coinbase, showed a high degree of intent to expand their services into non-US jurisdictions.
Recently, few reports claimed that a legal conflict between Coinbase and the SEC body could cause problems in the approval of Bitcoin spot ETF applications.
Currently, a dozen fund managers are lining up to get approval from the US SEC and most of these applications name Coinbase as the custodian for Bitcoin’s custody.
Also read: Turkish President appoints a crypto professor to design a framework for crypto regulation