YEREVAN (CoinChapter.com) — Coinbase is pressing Congress to establish clear regulations for digital assets. Chief Policy Officer Faryar Shirzad outlined six key areas that need legislative action. The exchange argues that without precise definitions, crypto markets will face uncertainty, affecting both businesses and investors.
Shirzad stated that digital assets should be categorized correctly to distinguish between securities, commodities, and other tokens. Clear classification, he noted, would help ensure market integrity and investor protection.
Coinbase has consistently advocated for crypto regulation and has taken legal steps to address what it sees as unclear enforcement by regulators.
Faryar Shirzad Outlines Coinbase’s Four Economic Freedoms for Crypto Adoption Amid Policy Uncertainty. Source: XCoinbase Calls for CFTC Oversight Instead of SEC
Coinbase supports giving the Commodity Futures Trading Commission (CFTC) authority over crypto spot markets. It argues that Bitcoin and Ethereum should be regulated as commodities, not securities, placing them under CFTC jurisdiction rather than the Securities and Exchange Commission (SEC).
The SEC, led by Gary Gensler, has classified many crypto tokens as securities, leading to legal disputes. Coinbase claims this approach creates uncertainty for crypto firms operating in the US. The Trump administration previously backed a lighter regulatory approach under the CFTC, a stance Coinbase continues to support.
Coinbase is also pushing for capital-raising rules that allow crypto projects to operate without automatically being classified as securities. The exchange wants guidelines that enable blockchain fundraising while complying with existing laws.
Coinbase Pushes for Stablecoin Regulations
Coinbase is calling for stablecoin regulations to ensure these digital assets have full asset backing and operate under clear financial oversight. The exchange argues that transparent crypto regulations would help maintain market stability and improve investor confidence.
The company also supports protections for decentralized finance (DeFi) and non-fungible tokens (NFTs). It argues that DeFi regulations should prevent unnecessary restrictions on crypto platforms while maintaining legal clarity.
Clear Rules for Crypto Exchanges
Coinbase is advocating for federal or state-level guidelines for crypto exchanges and custodians. The lack of standard regulations has led to inconsistent enforcement, creating challenges for businesses.
Shirzad stated that without clear crypto laws, US-based exchanges may move operations to other jurisdictions with more defined regulations. Developers and crypto firms might prefer countries with stable legal frameworks, which could reduce US influence in blockchain development.
Coinbase Takes Legal Action Against US Regulators
Coinbase has challenged US regulators over crypto oversight. The exchange has taken legal action against the Federal Deposit Insurance Corporation (FDIC) for withholding documents related to crypto banking regulations.
Chief Legal Officer Paul Grewal testified before Congress, raising concerns over crypto debanking and regulatory actions. Coinbase continues to push for clear policies that define the role of crypto in financial markets.
Coinbase’s Paul Grewal Accuses FDIC of Obstruction and Document Destruction in Crypto Oversight Case. Source: XThe exchange expects that 2025 could bring regulatory changes, impacting the crypto market and shaping the future of blockchain regulation in the US.
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