a16z policy director Brian Quintenz tweeted that the SEC’s current actions continue a pattern of irresponsible enforcement and regulation that harms entrepreneurs, investors, and consumers, while potentially stifling innovation and forcing responsible companies to leave the United States.
Brian Quintenz said that Coinbase has been a responsible participant in the industry for more than a decade and has helped open Web3 in the United States. As a public company, it has tried many times to register with the SEC and has long called for common-sense regulation, but regulators have not responded. Enforcement actions are not a substitute for guidance. Litigating whether a specific token is a security through enforcement actions against third parties such as these exchanges is inappropriate and does little to protect consumers or provide clarity to the market. The SEC should work with market participants to keep the rules up to date and clarify their application, which would be a responsible approach consistent with their stated mission.
Brian Quintenz noted that blockchain technology and Web3 have the potential to democratize a variety of industries. But for this innovation to happen in the United States, the government must provide rules to follow, not just lawsuits.
Brian Quintenz added that it has been four years since the SEC last issued meaningful crypto-related guidance. Ironically, today's action comes after a proposal in Congress that would give clear rules - protecting Americans and rooting out bad actors in the industry. The SEC should work with Congress and responsible American cryptocurrency companies to provide clarity, not add to the confusion.