Coinbase’s 6 Must-Haves for Congress to Fix Crypto Chaos
Crypto exchange giant Coinbase (Nasdaq: COIN) is pressing Congress to take swift action on cryptocurrency regulations.
In a February 19 blog post, Coinbase’s Chief Policy Officer Faryar Shirzad outlined six critical legislative priorities aimed at fostering blockchain innovation, protecting consumers, and preventing the U.S. from falling behind in the digital asset race.
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Shirzad warned that without clear rules, innovation will migrate overseas, exposing millions of American crypto users to regulatory uncertainty and risk. “Policymakers, developers, and the public shouldn’t need to be crypto experts to understand these regulations. Legislation must be clear, accessible, and free from unnecessary complexity,” he stated.
Coinbase’s six priorities emphasize legal clarity, market structure, and consumer protection. By implementing these changes, the U.S. can establish itself as a leader in the rapidly evolving crypto sector.
6 Key Crypto Reforms Proposed by Coinbase
1. Defining Digital Assets and Transactions
Coinbase urges lawmakers to establish precise definitions for digital assets, ensuring clear distinctions between securities, commodities, and other token classifications. This clarity will reduce uncertainty for developers, investors, and regulators alike.
2. CFTC Oversight of the Crypto Spot Market
The exchange calls for the Commodity Futures Trading Commission (CFTC) to oversee the crypto spot market, arguing that a dedicated regulatory body would enhance market integrity and investor protection.
3. SEC Rules for Capital Raising in Crypto
Coinbase seeks reforms that enable blockchain startups to raise capital without being unfairly categorized under traditional securities laws, which can hinder innovation and market growth.
4. A Clear and Competitive Stablecoin Framework
Stablecoins play a crucial role in digital payments, and Coinbase advocates for a structured framework ensuring these assets remain fully backed, transparent, and competitive within the financial ecosystem.
5. Protecting Decentralized Finance (DeFi)
Coinbase warns against overregulating decentralized finance (DeFi), smart contracts, and non-fungible tokens (NFTs), emphasizing that balanced oversight will encourage growth while maintaining security.
6. Regulatory Oversight for Centralized Crypto Entities
A standardized approach to regulating crypto exchanges and custodians is necessary, Coinbase argues, ensuring compliance while allowing decentralized alternatives to thrive.
Why These Reforms Matter
By implementing these six priorities, Coinbase believes the U.S. can foster a robust regulatory framework that:
Protects consumers from fraud and market manipulation
Encourages responsible blockchain innovation within the country
Provides legal certainty for businesses and developers
Positions the U.S. as a global leader in digital assets
As regulatory debates intensify, Coinbase’s push for legislative clarity underscores the urgency of modernizing crypto laws to keep pace with technological advancements.
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