Coinbase proposes its own plan to regulate cryptocurrencies in the US
The largest US cryptocurrency exchange, Coinbase, has proposed the formation of a new regulatory body to oversee the cryptocurrency market. With such a proposal, the head of the platform addressed the American Congress.
Against the background of the widespread of a new class of assets and uncertainty in their regulation, the exchange proposed a new approach to managing this financial sector, consisting of four components:
- Regulation of crypto assets should be done in a separate structure
- Creation of a single regulator for all digital currencies
- Protecting and empowering holders of a new asset class
- Assistance to existing financial regulators and assistance in the further development of the industry, as well as a guarantee of fair competition with other assets
The reason for Coinbase's strong position was that laws to facilitate oversight of the US financial system, developed in the 1930s, prevented the technological revolution from occurring. And although they are aimed at a fair approach to any new assets, the actions of the US SEC, according to the exchange, have become too aggressive and unfair in relation to cryptocurrencies and participants in the emerging market.
In parallel with its proposal to create a separate regulator, Coinbase said that it is aware of all the risks of the sector, demanding increased transparency, guarantees to protect investor funds from fraud, and market resilience in general. At the same time, they called for the promotion of innovation in the industry and insisted on fair competition.
Of course, such ideas often resonate in the hearts of members of the crypto community. But those who make such decisions, one way or another, become politicians. Therefore, the proposal should get to the federal discussion as soon as possible and find a response from the legislatures of various states. Not to mention the need to create a separate set of regulations relating exclusively to the crypto industry, if Congress nevertheless decides to consider the idea of an exchange.
According to the head of Coinbase, their proposal is based on more than 75 meetings with lawmakers, representatives of the crypto industry, related industries and academics. Now they intend to propose the solution to the SEC and Congress for consideration. To ensure that every voice is heard, the platform also encouraged users to join the active discussion on the matter on Github.
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