Coinbase Proposes Strategy to Streamline Crypto Regulation in the U.S.
Date: 2025-02-21 Author: Gabriel Deangelo Categories: BUSINESS
Coinbase Chief Policy Officer Faryar Shirzad outlined key initiatives that the company believes will help the U.S. move from the vague and rigid regulation that characterized the Biden administration to a more open and structured system under Donald Trump.
First, Coinbase is pushing for clarity in the classification of digital assets to differentiate between commodities, securities, and other types of assets. This would remove legal uncertainty for developers, users, and regulators.
The exchange also proposes transferring oversight of the spot cryptocurrency market to the Commodity Futures Trading Commission (CFTC), which would provide more consistent oversight.
In addition, Coinbase believes in the need to implement legislative reforms that will allow cryptocurrency companies to attract investment without the risk of their activities being automatically classified as securities.
The company also calls for the leading role of stablecoins in the US digital economy to be enshrined at the legislative level, ensuring their security, transparency, and support from regulators.
Special attention is paid to decentralized protocols (DeFi), smart contracts, and NFT platforms. Coinbase proposes to free them from excessive regulation, instead introducing balanced enforcement measures that will facilitate the development of these technologies.
Finally, the platform proposes transferring control over centralized crypto exchanges to the jurisdiction of states or federal agencies, while avoiding excessive interference in the activities of decentralized trading platforms.
Coinbase is convinced that the implementation of these initiatives will allow the United States to create a sustainable legal framework for the growth of the crypto industry, protecting users, and stimulating innovation.
Earlier, Coinbase CEO Brian Armstrong said the exchange had moved beyond traditional cryptocurrency activities and was now able to compete with the largest US financial institutions.
