Coinbase urges US regulators to create new unified system for crypto regulations
- Coinbase has put forward a proposal outlining a few key recommendations to regulate the crypto industry.
- The crypto exchange warned that if the US fails to regulate the new asset class, it may fall behind other governments in the future.
- The Nasdaq-listed firm suggests that there should be one regulator responsible for the digital asset industry.
Leading cryptocurrency exchange Coinbase has suggested that US regulators should create a new regulatory framework around digital assets. The firm argues that current regulations were built around financial institutions and concepts that do not apply to the new asset class.
US should introduce new crypto regulator
Coinbase recently published a document named “Digital Asset Policy Proposal: Safeguarding America’s Financial Leadership,” which outlined four key points. The Nasdaq-listed firm’s CEO, Brian Armstrong, stated that the country should create a new regulatory framework for cryptocurrencies.
Armstrong added that a single federal regulator should be responsible for the new guidelines on cryptocurrencies, rather than the “impenetrable array of regulators” in the US under the current regulatory environment.
In the document, Coinbase stated the cryptocurrency ecosystem had grown so much that the regulatory framework would need to adapt to the needs of modern society. The company added that it is time for a clear and comprehensive approach to regulating digital assets, which would require new laws and oversight structures for the new asset class.
Coinbase further asserts that in addition to regulating digital assets, the government should introduce new mechanisms to increase the security and confidence of users interested in cryptocurrencies and decentralized products. The proposal echoes SEC chairman Gary Gensler’s statement on protection against market manipulation and the increase of transparency and efficiency of markets.
The Nasdaq-listed firm also stated that the Marketplaces of Digital Assets should be interoperable with other protocols and blockchain platforms to encourage the growth of the cryptocurrency industry.
The crypto company warned that failure to regulate the new asset class could leave the country falling behind other governments. Coinbase noted that the US could be at risk of becoming a follower in regulation as opposed to being able to shape the world of modern finance, a position the United States has long occupied.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
