In light of a surge in public interest in digital assets, Paul Grewal, Coinbase‘s chief legal officer, believes the market is diligently responding to American’s financial needs. Over one-fifth of the US population has reportedly engaged in cryptocurrency transactions. Moreover, an overwhelming 60% voice the need for an overhaul of the current financial system, according to Grewal’s recent interview with Bloomberg TV.
Grewal asserts that cryptocurrencies are an integral part of America’s financial future, and the market strives towards delivering secure yet regulated investment opportunities. He spoke highly of the creation of Bitcoin exchange-traded funds (ETFs).
Grewal further expressed his disappointment in the U.S. Securities and Exchange Commission (SEC), alleging that it hinders the public’s access to digital assets. The SEC’s stance thus appears contrary to the nation’s interest in crypto technology and financial innovation.
While there are Bitcoin ETFs traded within the U.S., these are backed primarily by Bitcoin futures. The concept of “physical” spot Bitcoin is yet to be actualized in the ETF context. Despite this, there’s a resurgence of optimism about the possibility of a spot Bitcoin ETF making the list, particularly after BlackRock, the world’s largest asset manager, applied to list such an asset.
Recently, Coinbase took the proactive step of filing a motion to dismiss an SEC lawsuit against it. Grewal maintains that Coinbase welcomes interaction with any regulatory body; however, the SEC’s current claim crosses the boundary of existing laws, he adds.
There are two sides to this digital coin; on the one hand, the public’s immense interest in cryptocurrencies can hardly be overstated, as it provides a fresh perspective on financial transactions and offers an opportunity for a system overhaul.
On the flip side, while new investment products like the Bitcoin ETF being welcomed to the market, concern exists on whether the regulatory standards are rigorous enough to guard against potential crypto pitfalls. The road to a digital financial future can be both exciting yet fraught with obstacles. Hence, responsible investment and stringent regulation go hand-in-hand for a secure digital monetary future.
Source: Cryptonews
