Coinbase, one of the largest cryptocurrency exchanges in the United States, has published a digital asset policy proposal, a document offering both a justification and conceptual framework for the comprehensive regulation of digital assets in the United States.
This comes after Brian Armstrong, the CEO of Coinbase, alleged that the United States Securities and Exchange Commission threatened to sue his company if they went on to offer a crypto yield program which the SEC considers a security. This program intended to offer 4% annual yield returns on deposits of the USDC stablecoin. Due to this alleged threat by the SEC, Coinbase has since stopped the launch of the program.
The digital asset policy proposal is also Brian Armstrong making good on the promise he made at an interview with TechCrunch where he revealed that his company was preparing a draft regulatory framework for consideration by federal lawmakers. He stated, “Coinbase wants to be an advisor and a helpful advocate for how the U.S can create that sensible regulation.”
The proposal is a product of dozens of meetings with industry participants, policymakers, crypto innovators, and academics that the company’s representatives had held in the last several weeks. Brian tweeted earlier this month that, “we have now met with 30+ crypto firms, 25+ members of congress and/or staff, 4 major law firms and 3 trade groups about our regulatory proposal for crypto. Our policy team is doing great work and we are trying to be part of the solution.”
The Policy Proposal
The company’s intention is for the proposal to “animate an open and constructive discussion regarding the role of digital assets in our shared economic future” and offer good-faith suggestions on what a sensible approach to crypto regulation might look like.
The proposal broke down the approach to a new framework into 4 pillars; regulate digital assets under a separate framework, designate one regulator for digital asset markets, protect and empower holders of digital assets and promote interoperability and fair competition.
The proposal stated, “The United States is behind other major jurisdictions, including the European Union, the United Kingdom, Singapore, and other key jurisdictions in developing a unified approach to the treatment of digital assets. Absent taking similar steps, the United States is at risk of becoming a “taker” of regulation as opposed to the primary “shaper” of modern financial services — a position the United States has long occupied.”
The document also enumerates the benefits of the emerging system of digital finance for both consumers (democratization of financial markets) and regulators (more transparency and new ways to combat illegal activity).
The authors further maintain that laws drafted in the 1930s are a poor foundation for regulating the internet-native asset class, and that forcing digital assets into the legal framework developed before the computer age could lead to stifling crypto innovation in the U.S.
COIN gained 5.36% yesterday, currently standing at $260. It also up in pre-market skirmish by 0.13%