Coinbase proposed creating a separate body to regulate cryptocurrencies

Coinbase proposes to create separate legislation for the cryptocurrency industry and a separate agency that would regulate it.

According to the trading platform, the cryptocurrency ecosystem no longer fits into the existing legislative framework of the traditional financial system and requires separate regulation.

In presentations The company's "Digital Asset Policy Proposal" proposes that Congress prohibit the SEC from monitoring the market. Instead, it is necessary to create a special regulator for the digital asset market. The crypto-ecosystem does not fit into modern financial models and requires not adaptation of laws, but a new, more complex legal system. 

Coinbase proposed 4 regulatory areas.

▪ Regulation of digital assets in a separate system;

▪ Appointment of one special self-regulatory organization (SRO) responsible for regulating the cryptocurrency industry;

▪ Protection and development of the rights and responsibilities of digital asset owners by creating mechanisms to increase the security and trust of users of decentralized products; 

▪ Promoting interoperability and fair competition.

All proposals will be forwarded to the SEC for further dialogue with the regulator. However, the company notes that the initiative will not affect decentralized organizations and cryptocurrencies, which the department does not consider securities (bitcoin and ether).

One of the oldest regulated exchanges in the United States, Coinbase, has a long history of cooperation with the government. However, it is difficult to imagine that the Biden administration will be drawn into the bureaucratic process of creating a new agency.

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