The executive of the Robinhood crypto exchange shared his stance on the single regulatory body idea of the Coinbase exchange and described it as “just plain silly”.
During the earnings calls report of the Coinbase, Coinbase firm asserted that there are more than 50 regulators in the US and it is a very demotivating thing for the new business and initiatives in crypto and said that it will be better to have a single regulatory body to regulate the crypto market.
On 17 November, speaking at the Georgetown University Financial Markets Quality Conference, Dan Gallagher- Chief legal officer at Robinhood crypto exchange- said that it doesn’t make sense to add a new agency to regulate crypto.
Dan said that shifting the regulation power of the crypto from the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to a new regulator will be a type of stupidity. And this idea is totally weird that they heard it for the first time.
Here we should not see Robinhood’s legal executive as a competitor of the Coinbase exchange. Because Dan also worked in the SEC agency as a commissioner during the time frame of the Barack Obama administration. So probably, he understands well how it is tricky and tedious to handle the regulation of crypto and what is the hand power & reach of the sec agency, which can’t be easily achieved by other new agencies.
Dan also asserted that Robinhood exchange has its crypto operations with limited numbers of crypto assets to avoid any regulatory heat concerns, while Coinbase exchange provides support for more than 51 crypto assets. So in this way, Dan tried to indicate that the bigger the crypto business, the bigger the tension.
On 14 October, Faryar Shirzad- Chief Policy Officer at Coinbase exchange- suggested a single regulatory body on crypto. Frayer wrote
“To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility for digital assets markets should be assigned to a single federal regulator.”