Coinbase presented a regulatory plan for digital assets, urging the Securities and Exchange Commission of the United States to establish clearer directives.
The proposal follows a request from the SEC Commissioner, Hester Peirce, who directs the agency’s cryptography working group, for contribution to regulatory clarity.
According to the exchange, this decision combines with growing efforts to create a well -defined framework for the cryptographic industry.
The director of Coinbase chief policy, Faryar Shirzad, said:
“A transparent and collaborative process will help the agency and market players to shape the regulations that can provide clarity and a certainty for developers, clear rules for industry players and effective protections for investors.”
Key aspects of Coinbase proposal
Coinbase recommendations focus on four essential basic elements for a digital asset market that works well.
The exchange underlines the need for the dry to establish a clear taxonomy distinguishing the digital products from the titles. According to Coinbase, digital assets that do not grant rights in a company must be classified as raw materials, not titles.
Coinbase argued that the differentiation of digital products and titles would allow traditional financial instruments to move home. This change could improve global liquidity, rationalize asset transfers and reduce operational costs by eliminating ineffectiveness linked to obsolete obsolete market systems.
The exchange also urged the dry to abandon its classification of secondary market sales of digital products as transactions in securities. He argued that, whatever a digital asset is initially issued, its secondary market transactions should not be treated as securities.
Beyond specific dry reforms, Coinbase also called on the agency to postpone a broader development of the market framework at the congress. He noted that if the agency plays a role in training regulations, legislators should be those that define regulatory borders and solve existing uncertainties.
The exchange has also called regulations which support the growth of token securities. He proposed targeted policy changes to align the rules with blockchain’s economic realities, unlocking new opportunities in the financial markets.
Shirzad concluded:
“The fight directly on these basic points will give clarity which will allow the dry, to other federal agencies and to the congress to respond effectively to vital additional questions in the future of our industry in the United States. Clear advice is also quickly accelerating the adoption of more wave tools that introduce traditional finance to the current age, with the United States in mind. ”
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