Coinbase Publishes Proposal for Crypto Regulation with 4 Key Recommendations – Regulation

Cryptocurrency exchange Coinbase has released its crypto regulation proposal after “more than 75 meetings with government, industry and academic stakeholders,” CEO Brian Armstrong announced. In its Digital Asset Policy Proposal, the company recommends “four core pillars for future US regulation.”

Coinbase proposal for crypto regulation

Nasdaq-listed cryptocurrency exchange Coinbase released its Digital Assets Policy Proposal (DAPP) Thursday.

Coinbase CEO Brian Armstrong tweeted: “Today we are launching our Digital Asset Policy Proposal (DAPP), which we hope will help set a course for clear cryptocurrency and Web 3.0 regulation in the U.S. remains a financial leader.” He further shared:

This is not about Coinbase – we conducted more than 75 meetings with government, industry and academic stakeholders to shape this proposal and we believe it represents a consensus viewpoint. It is inherently inclusive and democratic.

Coinbase recently experienced the lack of regulatory clarity firsthand when it attempted to launch a lending program. The company met with the US 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 continues with the program. Coinbase subsequently leave its plan to bring the Lend product to market, and revealed its plan to create a crypto regulation proposal.

The company's chief policy officer, Faryar Shirzad, said on Thursday that the goal of Coinbase's proposal was to "join the public discussion about the future of our financial system." The company believes the conversation should focus on “The blockchain-driven and decentralized evolution of the Internet” and “The emergence of a distinctive asset class that is digitally native and enables unique economic use cases.”

Shirzad continued:

We recommend four core pillars to inform future U.S. regulation.

First, “We need a new and digitally-native framework for regulating digital assets – one that does not hinder innovation, inclusion and financial empowerment for all sectors of society,” he said.

Secondly, Coinbase’s Chief Policy Officer stated:

End-to-end crypto services must reside within a single regulator. Its authority would include a new registration process for digital asset marketplaces (MDAs).

Additionally, Coinbase suggested increasing consumer trust “by providing robust customer protection.” Shirzad noted: “This can be achieved through improved transparency processes, including tailored disclosures to inform buyers about digital assets.”

The fourth point is “promoting interoperability and fair competition”. Coinbase believes that “To realize the full potential of digital assets, MDAs must be interoperable with products and services across the crypto economy.” Shirzad added: “This can strengthen and protect a thriving consumer and developer ecosystem.”

Coinbase said anyone who wants to comment on its crypto regulation proposal can do so Github.

What do you think about Coinbase’s cryptocurrency regulation proposal? Let us know in the comments section below.

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