Coinbase urges Congress to act on crypto law reform, outlining 6 priorities to protect consumers and prevent blockchain innovation from leaving the U.S.
Coinbase Calls for Urgent Crypto Legislation
Crypto exchange Coinbase (Nasdaq: COIN) is urging Congress to address gaps in U.S. crypto regulation, outlining six key priorities to protect consumers and ensure digital asset innovation remains in the country.
In a Feb. 19 blog post, Faryar Shirzad, Coinbase’s chief policy officer, warned that unclear regulations are driving blockchain innovation overseas while exposing American investors to unnecessary risks. Shirzad emphasized the importance of simple and accessible legislation, stating, “Policymakers, developers, and the public don’t need to be crypto experts to understand these rules.”
Coinbase’s 6 Priorities for Crypto Regulation
- Define Digital Assets and Transactions
Coinbase advocates for clear definitions distinguishing securities, commodities, and other digital assets to ensure legal certainty for investors and developers.
2. Empower the CFTC to Regulate Crypto Spot Markets
The exchange argues that digital assets like bitcoin and ethereum are commodities, not securities, and calls for the Commodity Futures Trading Commission (CFTC) to oversee the crypto spot market.
3. Establish Clear SEC Rules for Capital Raising
Coinbase seeks regulatory clarity for blockchain developers raising funds, ensuring they can launch projects without restrictive securities classifications.
4. Create a Stablecoin Framework
Legislation should ensure stablecoins are fully backed and transparent while fostering competition in the financial system.
5. Protect Decentralized Finance (DeFi) and Digital Commerce
Coinbase advocates for rules that allow DeFi platforms, smart contracts, and non-fungible tokens (NFTs) to operate without excessive restrictions.
6. Clarify Oversight for Centralized Crypto Entities
The exchange calls for clear regulations for centralized crypto firms while allowing decentralized alternatives to continue innovating.
Warning Against Regulatory Inaction
Shirzad cautioned that failure to act will push developers and businesses abroad, weakening U.S. leadership in blockchain technology and leaving consumers unprotected. Coinbase argues that adopting these six priorities will create a balanced regulatory framework that supports innovation while safeguarding investors.
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