Coinbase Hires Regulations Veteran Jeff Horowitz as Chief Compliance Officer

Francisco Memoria
  • Leading crypto exchange Coinbase has recently hired regulation veteran Jeff Horowitz as its chief compliance officer.
  • The move comes in a bid for it to become the crypto world's first licensed broker-dealer.

Leading cryptocurrency exchange Coinbase has recently announced it hired regulation veteran Jeff Horowitz as its new chief compliance officer, presumably in a bid to navigate regulations to become the crypto world’s first licensed broker-dealer.

According to the company’s blog post, Horowitz was managing director and global head of compliance at Pershing, a subsidiary of one of the largest providers of brokerage custody in the world, BNY Melon. Before that, he worked at Goldman Sachs and Citigroup, as well as at the Federal Deposit Insurance Corporation (FDIC).

Horowitz’ roles reportedly saw him work to manage anti-money laundering and other compliance programs. Passing through the Financial Industry Regulations Authority (FINRA) and through the Financial Crimes Enforcement Network, the San Francisco-based exchange’s new chief compliance officer worked to “shape regulation and industry best practices.”

Asiff Hirji, Coinbase’s president and chief operating officer, wrote:

As Coinbase — along with the cryptocurrency space as a whole — grows and matures, continued regulatory compliance across all the varying jurisdictions globally will be critical. Adding Jeff to our team is one more important step along this journey.

Asiff Hirji

The announcement comes shortly after Coinbase revealed it was considering adding five new cryptocurrencies, and after an investigation found there was no insider trading going on before it listed Bitcoin Cash (BCH).

As CryptoGlobe covered, Coinbase has increasingly been moving to accommodate institutional investors as it has been launching several institutional grade products and services, including Coinbase Custody, Coinbase Institutional Coverage Group, Coinbase Prime and Coinbase Markets.

The San Francisco-based company has also recently established a political action committee (PAC), an organization formed to raise funds on behalf of candidates running for public office. Its move follows various acquisitions, including that of a regulated broker-dealer.

Despite its moves Coinbase has been seeing its popularity decline among retail investors. As reported, its users withdrew 37% more than they deposited in April of this year, as every dollar deposited was countered by $1.37 withdrawn. The crypto market decline saw its traffic decline significantly.

Institutional investors have been taking a risk-averse approach to cryptocurrencies, by watching them on the sidelines due to their volatility and lack of institutional grade products. Recently, the US Securities and Exchange Commission (SEC) rejected a Bitcoin ETF application filed by the Winklevoss twins.

Ripple’s Success as a Payment Company May Not Benefit XRP, Says Pompliano

Michael LaVere
  • Morgan Creek Digital co-founder Anthony "Pomp" Pompliano is a strong supporter of Ripple as a payment protocol company. 
  • Pomp remains unconvinced whether Ripple's success will ultimately benefit XRP as an asset for investment. 

Morgan Creek Digital co-founder Anthony “Pomp” Pompliano believes that Ripple’s success as a payment protocol may not benefit XRP in the long run. 

Speaking on the latest episode of The Pomp Podcast, Pompliano outlined his reasons for being a fan of Ripple. According to Pomp, Ripple excels as a blockchain-based payment company that has managed to forge relationships with banks and financial services across the globe. 

However, Pompliano remains unconvinced of whether Ripple’s overall success will translate into benefits for XRP. 

He said,

What I don’t understand, and I think where I choose to not engage on the XRP side, is I don’t understand why people are buying it, speculating on future price movements.

Pomp explained that he saw the advantages of using XRP in the Ripple ecosystem, but was skeptical of the cryptoasset for investment. 

He said,

To me, if Ripple is successful, that doesn’t mean XRP has to be successful.

Pomp continued, saying that if you separate XRP and Ripple, the latter’s ultimate goal is to build better software for banks. He called Ripple’s mission a “no-brainer,” “venture capital bet” and admitted to being jealous of missing out on investing in Ripple’s seed round. 

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