The crypto exchange firm issued a four-pillar whitepaper.
Coinbase, a cryptocurrency exchange, is pushing officials in the United States to develop a uniform system of cryptocurrency laws.
Coinbase Makes Regulatory Recommendations
The document “Digital Asset Policy Proposal: Safeguarding America’s Financial Leadership” was issued by Coinbase.
In addition, CEO Brian Armstrong penned an op-ed for the Wall Street Journal in which he outlined those arguments in further detail.
Armstrong and his firm made four major points. To begin, he proposed that the US government develop a new regulatory framework for digital assets. According to Armstrong, present rules are based on financial intermediaries and notions that do not apply to cryptocurrencies.
Second, Armstrong suggested that a single federal regulator should oversee the new structure. He claims that the United States now has an “impenetrable array of regulators.”
Third, he said that the new structure would safeguard crypto investors. Fourth, he proposed that the framework allows for fair competition and interoperability across crypto initiatives.
These ideas, according to Armstrong, are meant to begin a debate about crypto regulation, and they are not grounded in specific products, but rather a high-level view of the evolving financial system and the new technology that underlies it.
Will the Plan Be Implemented?
It’s unclear how much of an impact these ideas will have. Faryar Shirzad, Coinbase’s Chief Policy Officer, claimed the company has spoken with three dozen politicians and that the government’s response has been welcoming.
In recent months, Coinbase has been a focus for authorities. The Securities and Exchange Commission (SEC) of the United States threatened to sue the firm for its Lend product in September. In addition, Coinbase was compelled to stop trading on margin (CFTC) due to Commodity Futures Trading’s measures.
Coinbase has also spoken out against laws that might have a broader impact on the crypto sector, such as a recent crypto tax bill and rules requiring big transactions to be reported.
The US government, by the way, has devised its unified approach to crypto legislation. On the other hand, Coinbase’s ideas constitute a full redesign of the current system. Thus the two approaches do not appear to be compatible.
In the end, it is doubtful that the current set of authorities in the United States would adopt Coinbase‘s recommendations. However, the company’s recommendations may acquire support inside the cryptocurrency sector.