Coinbase, a cryptocurrency exchange platform, published its Digital Asset Policy Proposal on Oct. 14. This document provides both a conceptual framework and justification for the comprehensive regulation of digital assets within the United States.
Coinbase presented the proposal in the form of the product of many meetings that it had held with policymakers, academics, industry participants, and crypto innovators over the past few weeks.
The firm intends to use the proposal to “animate an honest and constructive discussion about the role of digital assets within our shared economic future” as well as to offer suggestions for a sensible approach in crypto regulation.
The document begins by listing the benefits of digital finance to consumers and regulators. This includes democratization of financial markets and increased transparency. Further, the authors argue that the laws of the 1930s are not a good foundation for regulating Internet-native assets. They also believe that forcing digital assets to conform to the legal framework that was in place before the advent of the internet could result in stifling innovation in cryptography in the U.S.
According to Coinbase, a more targeted and constructive approach is possible if you follow four principles: Define a separate regulatory framework to digital assets; designate a single regulator for overseeing digital asset markets; protect and empower holders; promote interoperability and fair trade.
Brian Armstrong, Coinbase CEO, stated that the proposed framework was not intended to be beneficial for his company.
He stated that while Coinbase is large enough to absorb the cost of unclear regulatory environments, it is smaller companies, consumers and the United States’ position as a global technological innovator that will benefit from forward-looking regulation in the digital asset space.