Coinbase proposes a new agency to regulate the cryptocurrency industry

Coinbase proposes a new agency to regulate the cryptocurrency industry

COINBASE, the leading stock exchange in America, would like to raise the relationship with the US government to the next stage and submit a fairly comprehensive proposal, as in her opinion the cryptocurrency markets and industry in the country should be regulated.

In a presentation with the title " Assets ”, the company explains that the ecosystem has grown so much that it is absolutely necessary today to improve the regulatory framework and to adapt to the needs of modern society.

For Coinbase, the crypto ecosystem has moved away so far from the world of modern financial system that it is not possible to apply legal analogies. It is necessary to create a new regulatory authority that focuses exclusively on the control of the crypto ecosystem.

The forcing of the entire spectrum of digital assets in supervisory categories that were codified before the use of computers is risked to suffocate the development of this transformative technology and thus relocate the innovative focus that is currently in the United States. Principal regulation ... This requires the creation of new laws and supervisory structures for trade and disclosure of digital assets.

What does Coinbase offer?

For Coinbase, the American cryptocurrency industry does not need a law, but a new, more complex legal system.
The proposal of Coinbase consists of 4 "regulatory columns".

regulate digital assets in a separate frame.

Instead of adapting traditional laws to such a young industry as cryptocurrencies and decentralized products, the US government should work on a specific legal framework for cryptocurrencies and digital assets that separate them from the existing and applicable rules.

name a regulatory authority for the markets for digital assets

Similar to the previous point, Coinbase explains that the government instead of trying to make a synergy between different institutions (e.g. sec, CFTC, IRS, etc.) cryptocurrency industry.

protect and strengthen the owners of digital assets

Coinbase claims that the government should create mechanisms in addition to regulating crypto to increase the safety and trust of the user of decentralized products. The suggestions name protection against market manipulation, promote the efficiency of the markets and increase their transparency.

Promotion of interoperability and fair competition

For coinbase, the Marketplaces of Digital Assets or MDas should be interoperable with other protocols and platforms in order to promote sustainable growth of the entire crypto ecosystem.

Coinbase has merit to speak to US regulating authorities about crypto

Coinbase has a long story with the US government. It is one of the oldest regulated stock exchanges in the United States, which was founded in 2012 after the success of octopuses.

Coinbase, however, has the honor of being the first North American stock exchange, the reach the public , a service that no other company has yet to be replicated.

In addition, Coinbase was a strong supporter that stock exchanges have a warm relationship with the supervisory authorities and maintains juicy contracts with law enforcement authorities and offers you tools for persecution of crypto transactions and other confidential purposes.