On October 14, cryptocurrency exchange platform Coinbase released its proposed digital asset policy, a document providing both a rationale and a conceptual framework for comprehensive digital asset regulation in the United States. .
Coinbase touted the proposal as the product of dozens of meetings with industry attendees, policymakers, crypto innovators and academics that company officials had held over the past few weeks.
The intention of the company is that the proposal “animates an open and constructive discussion on the role of digital assets in our common economic future” and offers good faith suggestions on what a sensible approach to crypto regulation might look like. .
The paper begins by listing the benefits of the emerging digital finance system for consumers (democratization of financial markets) and regulators (more transparency and new ways to tackle illegal activities). The authors further argue that laws drafted in the 1930s provide a poor basis for regulating the native Internet asset class, and that forcing digital assets into the legal framework developed before the computer age could lead to stifling innovation. cryptographic in the United States.
A more appropriate and therefore more constructive approach, according to Coinbase, should be based on four key principles: Define a separate regulatory framework for digital assets; designate a single regulator to oversee digital asset markets; protect and empower bearers; promote interoperability and fair competition.
In a separate editorial published the same day in the Wall Street Journal, Coinbase CEO Brian Armstrong argued that the proposed framework is not meant to benefit his business alone.
He argued that while Coinbase is large enough to absorb the costs of an unclear regulatory environment, it is small businesses, retail consumers, and the United States’ position as a global technology leader that stand to benefit from it. ” prospective regulation of the digital asset space. .