Coinbase, the largest publically held cryptocurrency exchange, is onboard when it comes to getting the ball rolling on regulation after Securities and Exchange Commission Chairman Gary Gensler said the exchanges operating in the $2 trillion market, favored by the likes of Elon Musk, have no oversight.
“There is not a market regulator around these crypto exchanges and thus there is not protection against fraud or manipulation” Gensler warned during his first official appearance as SEC Chair before the House Financial Services Committee Thursday.
In support, Coinbase’s chief legal officer Paul Grewal said the company can help “get it right.”
“We welcome conversations like this about how to get crypto regulation right. In fact, we’d welcome any chance to share our own experience @coinbase with what works for consumers, users and law enforcement–and what doesn’t” Grewal said in a tweet.
Coinbase, which made its debut as a public company via a direct listing, opened for trading at $381 apiece and climbed as high as $429.54 before settling at $328.28. The Nasdaq set a reference price of $250.
The stock is currently trading around $263 per share as of Friday.
Gensler also suggested, Congress needs to get more aggressive in the space.
“I think it’s only Congress that could really address it, it would be good to consider,” he told lawmakers who reveled in questioning Wall Street’s top cop on everything from cryptos, payment for order flow and the Gamestop trading frenzy that roiled the markets in January.
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The heavily shorted video game retailer, along with other stocks such as AMC and Bed, Bath & Beyond, saw extreme swings driven by retail investors, many of which appeared to be Reddit users. This caused Robinhood, the popular trading app, to restrict trading access as the firm faced a temporary liquidity crunch. The move prompted outrage from the Main Street trading community.
Robinhood faced a similar glitch this week as demand for various cryptocurrencies surged.
Gensler while reminding the committee members he is just three weeks on the job, promised to have a report on what happened around GameStop by the summer.