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Comment by technotony | Hacker News Reader

This is optimistic, it would require traditional financial service regulators like the SEC to ceed power to a new agency. That's very unlikely to happen. Most of the regulatory institutions in America work to increase their power not hand it off to a new agency. We see this in coinbases own fight with the SEC and other agencies about who regulates yield earning stablecoins.

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Coinbase could solve that problem by becoming a bank. Or a broker. Or a commodity exchange. But they want "none of the above".

Probably, but for Coinbase to even manage to steer the conversation in this direction it’s a victory. They are the best positioned in the industry to even attempt it and if they’re rejected they are first in line to provide the infrastructure.

This is a good argument for rejecting out any input from Coinbase out of hand.

Have they steered the conversation at all, though? From Bloomberg:

> “There’s trading venues and lending venues where they coalesce around these, and they have not just dozens but hundreds and sometimes thousands of tokens on them,” Gensler said Monday at the Code Conference in Beverly Hills, California. “This is not going to end well if it stays outside the regulatory space.” [1]

Coinbase already got a Wells notice, and whined about the SEC being "sketchy" as a result. [2]

I really don't think this conversation is moving in their favor in the actual regulatory circles.

1: https://www.bloomberg.com/news/articles/2021-09-28/unregulat...

2: https://www.bloomberg.com/news/articles/2021-09-08/coinbase-...

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