Cryptocurrency Exchange Coinbase announced Today the company hired Brett Redfearn, ex-director of the SEC’s Commerce and Markets division, to lead the capital markets division. These recent regulatory moves were nothing new to the crypto space as governments continued to impose stricter regulatory mandates on the industry. Back in February, Binance had hired Max Baucus, a long-time member of the US Senate, to lead the exchange through future regulatory affairs.
The Crypto Giant wants to gain regulatory clarity and goodwill after fines of USD 6.5 million
Mr Redfearn’s hiring comes at a time when lawmakers are increasing scrutiny and vigilance. Just weeks ago, Coinbase agreed to pay $ 6.5 million to the Commodity Futures Trading Commission (CFTC) to clarify allegations that the exchange manipulated trading prices on its GDAX trading platform between 2015 and 2018. GDAX, now known as Coinbase Prowas accused by the CFTC of “ruthless delivery[ing] false, misleading, or inaccurate reports on digital asset transactions. ”
These regulatory violations damage the reputation and credibility of the crypto industry as a whole, and leave lawmakers to question whether the room has been running amok for far too long. As institutional interest in crypto markets increased, government officials became suspicious of these digital assets. In February the Stock Exchange and the Commission published one Compliance notice on the potential enforcement of securities regulations for cryptocurrencies.
Coinbase to DPO: Why It Matters Given the Recent Regulatory Adjustment
It’s also important to note that Coinbase is preparing to go public via a direct listing on the Nasdaq. The exchange’s S-1 was first released and made $ 300 million in net income in 2020 – a 1,100% increase from 2019. Coinbase is likely to become DPO on valuations above $ 100 billion. As a publicly traded company, Coinbase must disclose all financial and stock market transactions. With the expertise of the former SEC director, the exchange will attempt to step through the currently murky regulatory waters.
“I appreciated the considerable potential in this area if issuers, markets and market participants can control the regulatory landscape appropriately. And I can contribute to that, ”Redfearn said in one Blog entry.
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