U.S. Regulators to Blame for FTX Debacle, Coinbase CEO Says

United States financial regulators, such as the U.S. Securities and Exchange Commission (SEC) have to take some of the blame for the latest troubles in the crypto markets surrounding the insolvency of cryptocurrency trading platform FTX. This according to the head of Coinbase, Brian Armstrong..

Following the collapse of the FTX global crypto exchange, US officials are actively examining FTX.US, Coinbase, and Binance. This against the sore legs of Brian Armstrong and Ripple CEO Brad Garlinghouse.

Coinbase CEO Brian Armstrong was not pleased with the news that US officials were looking into FTX.US, Coinbase, and Binance.US in the aftermath of the FTX debacle.

The enforcement action against US-based enterprises for the irregularities perpetrated by an offshore crypto exchange that lie beyond the authority of US authorities makes no sense, according to Armstrong.

Armstrong’s remarks followed Senator Elizabeth Warren’s request for “tough enforcement” in the aftermath of the FTX problem. The CEO of Coinbase blamed the SEC for the lack of regulatory certainty in the United States, which he says pushed 95% of trading activity abroad.

Ripple CEO Brad Garlinghouse, who is now embroiled in a securities case with the SEC over allegedly selling Ripple’s native token as an unregistered security, used Singapore as an example. He claims that corporations in the United States have little instructions on how to comply, but in Singapore, there is a defined licensing system and tax economy, making compliance considerably easier.

The failure of the world’s third-largest cryptocurrency exchange finally drew the attention of US regulatory organizations. According to a recent analysis, the United States The Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) are looking into the exchange’s subsidiary in the United States.

Regulators are looking into whether certain of FTX’s crypto loan products constitute securities. In addition, officials are investigating its links to the parent business, which is based in The Bahamas.