Coinbase Urges Congress to Address Inadequate Cryptocurrency Regulations
Coinbase is advocating for improved crypto regulations in the United States, outlining six priorities aimed at establishing clear rules for the industry. The company emphasizes balancing innovation with consumer protection.
- Define digital assets to distinguish between securities, commodities, and other tokens, ensuring market integrity.
- Propose CFTC oversight for crypto spot markets instead of the SEC, similar to the Trump administration's stance.
- Establish transparent fundraising rules for blockchain projects to prevent all tokens from being classified as securities.
- Implement stablecoin regulations to ensure full backing and financial stability oversight.
- Protect DeFi and digital commerce from excessive regulation to foster innovation.
- Create a legal framework for centralized crypto businesses, including exchanges and custodians, under clear guidelines.
Shirzad warned that without prompt action, the U.S. risks losing its competitive edge in blockchain technology and exposing consumers to unregulated risks. Coinbase is pushing lawmakers to establish fair regulations that support crypto innovation while ensuring financial security.
The exchange is involved in legal disputes with regulators like the FDIC, claiming it has withheld important oversight documents. Looking ahead, Coinbase anticipates a more favorable regulatory environment by 2025, which could enhance growth in the digital asset market.