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 fundamental pillars to inform future US 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 are launching our Digital Asset Policy Proposal (DAPP) which we hope will help pave the way for clear crypto regulation. currency and Web 3.0 in the United States. remains a financial leader. He further shared:
This is not Coinbase – we have held over 75 meetings with stakeholders from government, industry and academia to help shape this proposal, and we believe it represents a consensus point of view. . It is inclusive and democratic by design.
Coinbase recently experienced 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 goes 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 director of policy, Faryar Shirzad, explained Thursday that the purpose 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 fundamental pillars to inform future US 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.
Second, Coinbase’s policy director detailed:
End-to-end cryptographic services should be under a single regulator. Its authority would include a new registration process established for digital asset marketplaces (MDAs).
Additionally, Coinbase suggested inspiring consumer confidence “by providing strong protection for customers.” 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 the products and services of the crypto-economy.” Shirzad added, “It can strengthen and protect a thriving consumer and developer ecosystem. “
Coinbase said that anyone wishing to comment on their crypto regulatory proposal can do so on Github.
What do you think of Coinbase’s crypto regulatory proposal? Let us know in the comments section below.
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