• 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.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Tezos Price Prediction: XTZ to provide bulls a generous exit before a 15% nosedive

Tezos Price Prediction: XTZ to provide bulls a generous exit before a 15% nosedive

Tezos Price is hovering above a stable support level after facing an intense rejection. While this foothold is likely to provide harbor, it will not be for long. Investors must prepare for a long squeeze as bears make an elaborate move.

More Tezos news

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price is in a no man’s land and depending on how the altcoin reacts to a few barriers, investors can bet on its direction. But a minor retracement in the short-term seems likely given the current market conditions.

More Avalanche news

Why Terra’s LUNA is bound to face a technical punishment

Why Terra’s LUNA is bound to face a technical punishment

Terra (LUNA) price action is facing headwinds from both sides as a technical candlestick pattern is throwing a spanner in the works, together with that long-feared dollar strength that is re-emerging after several warnings from Fed.

More Terra news

Why Solana price action is going nowhere

Why Solana price action is going nowhere

Solana's (SOL) price, from a first glance at the sheet, looks bullish and set forth to continue its rally and winning streak. However, a closer look under the hood reveals that on a weekly chart, price action is going nowhere and could soon collapse once a tail risk gets inflated again.

More Solana news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP