Coinbase is intensifying its efforts to bring clarity to crypto regulations in the U.S. by proposing a new framework for the SEC. The exchange argues for clear rules distinguishing digital assets from traditional securities and urges Congress to take the lead in defining regulatory boundaries.
The Call for Clearer Rules
SEC Commissioner Hester Peirce recently asked for industry input on crypto regulations, and Coinbase responded with a detailed roadmap. The exchange argues that the SEC’s current approach creates uncertainty, making it difficult for businesses and investors to navigate the space. According to Coinbase’s chief policy officer, Faryar Shirzad, a well-structured and transparent framework will provide certainty for developers, clear guidelines for industry players, and strong protections for investors.
Separating Crypto from Traditional Securities
In his blog post, Coinbase addresses one of the key issues of SEC’s classification theory and how digital assets are classified. It believes that cryptocurrencies that don’t represent ownership in a business should be treated as commodities, not securities. This distinction is crucial because it would allow financial markets to integrate blockchain-based assets more smoothly, improving liquidity and efficiency.
Congress Should Take the Lead
Coinbase also believes that broader crypto regulations shouldn’t be left solely to the SEC. Instead, it’s calling on Congress to set the foundation for how digital assets are governed. The exchange argues that lawmakers, not regulators, should define the boundaries and resolve existing uncertainties in the industry.
Coinbase champions the need for clear and transparent regulatory rules for cryptocurrencies, emphasizing the importance of legislative initiatives to create a sustainable and predictable legal framework in the digital assets sector.
