Cryptocurrency exchange Coinbase released its proposed crypto regulation after “more than 75 meetings with stakeholders from government, industry and academia,” CEO Brian Armstrong revealed. In its Digital Asset Policy Proposal, the company recommends “four core pillars to inform future U.S. regulation.”
Coinbase’s proposal for the regulation of crypto
The Nasdaq-listed cryptocurrency exchange Coinbase released its Digital Asset Policy Proposal (DAPP) on Thursday.
Coinbase CEO Brian Armstrong tweeted: “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. remains a financial leader. He further shared:
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 is inclusive and democratic by design.
Coinbase recently experienced firsthand the lack of regulatory clarity when it tried to launch a lending program. The company met with the United States Securities and Exchange Commission (SEC) to discuss the product. However, the SEC said it was a security and threatened to sue the company if it went ahead with the program. Coinbase subsequently abandoned plans to launch the Lend product and unveiled plans to create a proposal to regulate crypto.
The company’s chief policy officer, Faryar Shirzad, explained Thursday that the goal of Coinbase’s proposal is to “engage in the public conversation about the future of our financial system.” The company believes the conversation should focus on “the evolution of the blockchain-based, decentralized Internet” and “the emergence of a distinctive asset class that is digitally native and enables unique economic use cases. “.
We recommend four core pillars to inform future U.S. regulation.
First, “we need a new, digitally native framework for how we regulate digital assets – one that does not hamper innovation, inclusion and financial empowerment for all sectors of society.” , did he declare.
Secondly, Coinbase’s chief policy officer detailed:
End-to-end crypto services must sit within a single regulator. Its authority would include a new registration process established for digital asset marketplaces (MDAs).
In addition, Coinbase suggested instilling consumer confidence “by providing robust customer protection.” Shirzad noted, “This can be achieved through enhanced transparency processes, including personalized disclosures to educate buyers 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, “It can strengthen and protect a thriving consumer and developer ecosystem. “
Coinbase said that anyone wanting to comment on its crypto regulatory proposal can do so on Github.