Coinbase proposal for comprehensive regulation of digital asset

Coinbase proposal for comprehensive regulation of digital asset

One of the largest cryptocurrency exchanges in the United States, Coinbase, has disclosed its proposal for comprehensive regulation of digital asset.

The policy document contains both a justification and conceptual framework for the comprehensive regulation of digital assets in the United States.

Brian Armstrong, the CEO of Coinbase, with this digital asset policy proposal is keeping to what he said in an interview with TechCrunch where he revealed that his company was preparing a draft regulatory framework for consideration by federal lawmakers.

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This proposal is the output of several meetings held by the company’s representatives with industry participants, policymakers, crypto innovators, and academics in the last several weeks.

The CEO had tweeted earlier this month that, “we have now met with 30+ crypto firms, 25+ members of congress and/or staff, 4 major law firms and 3 trade groups about our regulatory proposal for crypto. Our policy team is doing great work and we are trying to be part of the solution.”

About the Coinbase Policy Proposal for Regulation of Digital Asset

Part of the proposal reads, “The United States is behind other major jurisdictions, including the European Union, the United Kingdom, Singapore, and other key jurisdictions in developing a unified approach to the treatment of digital assets. Absent in taking similar steps, the United States is at risk of becoming a “taker” of regulation as opposed to the primary “shaper” of modern financial services — a position the United States has long occupied.”

The proposal further states that laws drafted in the 1930s are a poor foundation for regulating the internet-native asset class, and that forcing digital assets into the legal framework developed before the computer age could lead to crippling crypto innovation in the U.S.

It broke down the approach to a new framework into 4 pillars; regulate digital assets under a separate framework, designate one regulator for digital asset markets, protect and empower holders of digital assets and promote interoperability and fair competition.

Also contained in the proposal are the benefits of the emerging system of digital finance for both consumers (democratization of financial markets) and regulators (more transparency and new ways to combat illegal activity).

 

Author: Greg