Coinbase proposes new US regulator focused exclusively on cryptocurrencies

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Coinbase proposes new US regulator focused exclusively on cryptocurrencies By Hannah perez

The central pillar of the proposal is the creation of a new regulatory body dedicated to the crypto industry. The regulatory framework does not address Bitcoin, Ether, or the DeFi space.

***

Cryptocurrency exchange Coinbase on Thursday presented a broad proposal for a new comprehensive regulatory regime for the digital asset industry in the United States.

One of the pillars of the proposal, presented in a document entitled “Digital asset policy proposal“Is the formation of an exclusive regulatory agency for the cryptographic space. This would mean that The United States would see the patchwork of federal agencies replaced by a newly formed single regulator.

Coinbase presented the proposal as a product of dozens of meetings with industry participants, policy makers, crypto innovators, and academics that company representatives had held in recent weeks. The intention of the firm is that the initiative “encourage an open and constructive discussion”And offer suggestions on what a sensible approach to cryptocurrency regulation might look like.

ORn unique body dedicated to regulating crypto

In the document, which was quoted by various news outlets, Coinbase calls the new regulator with control over digital asset markets “MDA”. The exchange wrote highlighting the need for such a new body:

Ensuring consistent regulation and enforcement of laws requires a single regulator. When new questions or policy challenges arise, the ability of a single dedicated regulatory body to respond efficiently and in a timely manner benefits everyone.

What we fundamentally realized is that there are such differences in the technology underlying digital assets […] There was no point taking a legacy regulator and transforming it in some way“Added the director of policies of Coinbase, Faryar Shirzad, during a press conference.

See also  $ 500 Million CryptoPunk: NFT Nearly Breaks Record for World's Most Expensive Art

The extensive proposal also details the functions that this body would have. “The authority [del nuevo regulador] would include a new registration process established for digital asset markets (MDA) and appropriate disclosures to inform buyers of digital assets“.

The document further argues that laws drafted in the 1930s are a poor basis for regulating the Internet’s native asset class, and that forcing digital currencies into the legal framework developed before the computer age could stifle innovation in the world. country. Shirzad for his part added to this line and described the existing regulatory regime as a “legacyBased on an era of paper.

Bitcoin, Ethereum and DeFi are not covered by regulation

During the press conference, the representative of Coinbase reiterated the need for a new regulator “digital native”To help businesses and consumers enjoy the benefit of Blockchain. He also suggested that Bitcoin and Ethereum they would be exempt from the regulatory framework due to their decentralized nature.

In general, the proposal seems to be about centralized companies and it does not address decentralized financial protocols (DeFi).If you have a truly decentralized entity or protocol, there is nothing to regulate in our proposalShirzad commented. The executive director of Coinbase, Brian Armstrong, also wrote an article for opinion in the Wall Street Journal to accompany the announcement.

In his post, Armstrong argued that The proposed framework is not intended to benefit your business alone. Instead, he argued that, Yes OK Coinbase is large enough to absorb the costs of an unclear regulatory environment, it is smaller businesses, retail consumers, and the United States’ position as a global technology leader that can benefit from specific regulation for the digital asset space .

Headwinds from Washington

The proposal of Coinbase It comes at a time of pressure from Washington and US federal agencies on the cryptocurrency industry. In this context, it arises shortly after the Securities and Exchange Commission (SEC) halted plans to Coinbase launching a crypto loan product.

See also  Bitmain would soon present the S19 XP miner, 36% more efficient than its previous version

While the regulatory proposal might be well received by members of the crypto space, it is unlikely that it will gain traction in Washington in the foreseeable future. Shirzad acknowledged the potential headwinds to convince the federal government, but said one of the goals is for political leaders to consider designing a regulatory regime for crypto from a new perspective.

It should be noted that the creation of a new agency such as the one proposed Coinbase it would require a law that passes congressional approval and the support of the White House.


Recommended reading


Sources: Blog.Coinbase, The Block, Decrypt, Cointelegraph, file

Hannah Estefanía Pérez’s version / DailyBitcoin

Image from Unsplash

Leave a Comment

Your email address will not be published. Required fields are marked *