Coinbase Propose Four Core Pillars For Future Crypto Regulation In The U.S.
A top Crypto exchange Coinbase has published its proposal for crypto regulation after numerous meetings with stakeholders in government, industry, and academia, according to CEO Brian Armstrong revealed. Coinbase recommends four core pillars to inform future U.S. regulation.
“Today we’re launching our Digital Asset Policy Proposal (DAPP) which we hope will help chart a course for clear regulation of cryptocurrency and web 3.0 in the U.S. It’s critical to bring clarity to this space and ensure America remains a financial leader.”
Today we're launching our Digital Asset Policy Proposal (dApp) which we hope will help chart a course for clear regulation of cryptocurrency and web 3.0 in the US. It's critical to bring clarity to this space and ensure America remains a financial leader. https://t.co/LYEMpmS99T
“This is not about Coinbase — we completed more than 75 meetings with stakeholders in government, industry, and academia to help shape this proposal, and we feel it represents a consensus point of view. It’s inclusive and democratic by design.”
Coinbase has had its firsthand experience with the lack of regulatory clarity when it tried to launch a lending program called ‘Lend’. The company had been interacting with the U.S. Securities and Exchange Commission (SEC) to discuss the product. However, the SEC eventually concluded Lend a security and threatened Coinbase with a lawsuit, if it went ahead with the program. Coinbase abandoned its plan to launch the Lend product and announced to create a proposal for future crypto regulation.
Faryar Shirzad, the chief policy officer of Coinbase, clarified that the goal of Coinbase’s proposal is to “engage in the public conversation about the future of our financial system.” The company believes that the discussion should focus on “The blockchain-driven and decentralized evolution of the internet” and “The emergence of a distinctive asset class that is digitally native and empowers unique economic use cases.”
Shirzad continued:
“We recommend four core pillars to inform future U.S. regulation.”
Firstly, “We need a new and digitally-native framework for how we regulate digital assets – one that doesn’t encumber innovation, inclusion, and financial empowerment for all sectors of society,” he stated.
“End-to-end crypto services must sit within a single regulator. Its authority would include a new registration process established for marketplaces for digital assets (MDAs).”
In addition, Coinbase suggested instilling consumer confidence “by providing robust customer protection.” Shirzad noted, “This can be achieved through enhanced transparency processes, including tailored disclosures to inform purchasers of digital assets.”
The fourth point is to “promote interoperability and fair competition.” Coinbase believes that “To realize the full potential of digital assets, MDAs must be interoperable with products & services across the cryptoeconomy.” Shirzad added that “This can empower and protect a thriving consumer and developer ecosystem.”
Coinbase opened its crypto regulatory proposal for comments on Github.
