Cryptocurrency Exchange Coinbase on Wednesday cut its policy vision and urged Congress to pass laws that would give clarity to the digital asset industry and protect consumers.
Blueprintswritten by Coinbase Chief Policy Officer Faryar Shirzad, breaks down what the exchange believes Congress should prioritize when writing laws. Shirzad has issued a harsh warning against omissions, suggesting that the US delays at a global stage are not passed, “thoughtful laws.”
“Developers and businesses seek opportunities overseas, and consumers remain vulnerable to fraud and systemic failure,” Shirzad added. ”
The blog post comes as various policymakers in the Trump administration and Congress are embracing the cryptocurrency industry after years of hostility from the Biden administration, chasing crypto giants like Coinbase.
To turn the Washington page, Coinbase has poured millions into the 2024 race, selecting pro-crypto candidates, and aiming for the 2025 and 2026 races.
Amidst the tension between the last administration and industry, regulations are lacking clarity. Shirzad argued that unclear regulations left innovators uncertain, putting consumers at risk.
“Blockchain technology and digital assets are restructuring the global economy and bringing opportunities for innovation, financial inclusion and economic growth,” writes Shirzad. “However, the lack of clear laws in the US will curtail this possibility, expose consumers and promote innovation overseas.”
Coinbase's legal wish list includes measures that clearly define digital assets that help Americans distinguish between securities, goods and other tokens, and develop without all tokens being considered security. Create clear rules on how people raise capital for blockchain projects.
Most notable from Coinbase is that it provides Crypto Spot Trading's Commodity Futures Trading Commission (CFTC) oversight.
By empowering CFTC, Shirzad said this will ensure transparency and “protect consumers from fraud and manipulation.”
Coinbase also calls for protection of its Stablecoin framework and its decentralized financial and digital commerce platform, with the latter saying it must be freed from “burdening regulations.”
“Stubrecoin plays an important role in the digital economy by bridging cryptocurrencies and Fiat currencies,” writes Shirzad. “The law must ensure that stubcoins are safe, fully supported and transparent, while encouraging competition and innovation in the market.”
