Surgical removal’ of crypto will only weaken USD dominance, commentators say

A day after Coinbase received a Wells notice from the Securities and Exchange Commission, industry commentators weighed in on what recent regulatory actions mean for America’s crypto future.

The Wells notice is the SEC’s preliminary indication of charges against companies and individuals. According to one anonymous sentence, the notice proposes that Coinbase may have illegally offered security-based tokens, securities and digital assets to investors without proper registration.

Commentators from the U.S. financial sector have responded to the news with a mixture of reluctance, indifference, and some even with outright condemnation. Since Coinbase is the largest U.S. crypto exchange by volume, the effects of its potential legal battle with the SEC could have reverberations across the world.

“Allowing regulators to surgically remove some cryptocurrencies from the market on the grounds of insufficient regulation or compliance would significantly weaken the USD’s dominance,” commented Richard Lumb, chairman of Diebold Nixdorf. “In time, it will cause a damaging effect on the global economy, particularly emerging markets.”

Removing a crypto asset from the market, he cited, also weakens the allure of crypto-assets as one of the ways to dig oneself out of cyclical debt cycles.

Lumb added: “Rather than blocking access to cryptocurrencies, it would be wiser for regulators to focus more on developing a crystal clear and comprehensive regulatory framework that recognises the transformational benefits of the technology.

In conclusion, a ‘surgical removal’ of crypto from the markets may just lead to more USD dominance and significantly weaken the power of cryptocurrencies when it comes to global financial independence and economic development.