The Director of Coinbase Chief Policy (CPO) asked American legislators to establish a robust regulatory framework that benefits the cryptographic industry and American investors, suggesting six key priorities to protect users and develop the sector with regulations clear.
Coinbase urges the congress to unlock the potential of the industry
The CPO of Coinbase, Faryar Shirzad, shared on Wednesday a blog article urging the American Congress to act quickly on cryptographic regulations, declaring that it is time to move away from the undesirable legislation which has harmed the potential of the industry in the United States.
He stressed that the lack of regulatory clarity has created an unfavorable, uncertain and risky environment for innovators and consumers, which requires a new regulatory framework to “unlock the potential of blockchain while protecting the public”.
Shirzad suggests that the congress must design legislation on cryptography which allows developers to build, protect customers by choice, promotes participation in the blockchain economy and creates guards for centralized intermediaries.
Shizard on why Congress should act swiftly. Source: Coinbase
The CPO of Coinbase considers that Congress, as part of the new user -friendly administration of crypto, has the possibility of “promulgating thoughtful legislation which gives clarity to innovators and businesses while protecting consumers”.
To achieve a balance between innovation and protection, Shirzad advises Congress to keep the rules simple and intuitive, which makes them simple and accessible to everyone. In addition, legislators should integrate cryptographic legislation transparently instead of “reinventing the wheel” and disturbing existing frameworks.
He added that the protection of decentralized finances (DEFI) and digital trade was crucial, because these cutting -edge innovation areas should remain free to develop without unnecessary restrictions. In addition, the congress must focus on the protection of investors while eluding the overtaking, which could lead to innovation in offshore.
Congress should prioritize clear definitions
Shirzad has described six key priorities for Congress to clarity and customer protection. First, American legislators should clarify the definition of digital assets, distinguishing between titles, basic products and other types of tokens.
Second, COC Coinbase considers that Congress should grant the Commodity Futures Trading Commission (CFTC) on the market market, because digital assets like Bitcoin and Ethereum are products instead of titles. Depending on the position, the CFTC must be encouraged to supervise the market at the cryptographic point, to ensure transparency and to protect customers against fraud and manipulation.
Meanwhile, Shirzad proposed that the American Congress should order the Securities and Exchange Commission (SEC) to create rules allowing responsible fundraising, noting that developers “need clear pathways to raise capital for projects Blockchain without each token being treated as security. ”
Other key priorities are to establish a stablecoin framework which guarantees that the stages are fully supported and transparent and protecting the DEFI and Digital trade, including the DEFI protocols, intelligent contracts and NFT platforms.
Finally, Shizard considers that the congress must ensure the clarity of the centralized entities. He suggested that centralized platforms that have user funds should be regulated to ensure responsibility and give confidence to customers.
Coinbase’s blog post is involved in the middle of the company’s efforts to seek regulatory clarity in the United States. The Crypto Exchange recently sent a letter to American regulators, requesting clarity on cryptographic banking barriers.
The exchange has urged American regulators to confirm whether banks can offer services to cryptographic companies. Shirzad explained that they “are entirely at the idea that we need a complete ecosystem to support the cryptography economy”, adding: “It is advantageous to have a large participation in the cryptographic economy” .
Bitcoin (BTC) trades at $97,570 in the one-week chart. Source: BTCUSDT on TradingView
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