Coinbase Urges US Lawmakers to Overhaul Crypto Regulations

Coinbase, a leading centralized cryptocurrency exchange, has outlined six key priorities to overhaul the US crypto regulatory framework. The suggestions come at a time when US President Donald Trump has expressed his commitment to making the country a "Crypto Capital."

Coinbase's Chief Policy Officer, Faryar Shirzad, has emphasized the need for a clear definition of digital assets to help Congress distinguish between securities, commodities, and other digital tokens. This would enable lawmakers to create more targeted and effective regulations for the crypto industry.

Shirzad also supports the Commodity Futures Trading Commission (CFTC) as the more competent regulator for top cryptocurrencies like Bitcoin and Ethereum, rather than the Securities and Exchange Commission (SEC). This stance aligns with the "non-security" argument presented by some crypto firms in their legal battles against the SEC.

The Coinbase CPO calls for clear rules for blockchain fundraising, arguing that it is illogical to classify every token as a security. He also highlights the importance of creating a clear regulatory framework for stablecoins to ensure financial stability.

Shirzad emphasizes the need to protect the decentralized finance (DeFi) and non-fungible token (NFT) sectors from excessive regulation. He warns that overregulation could stifle the innovative nature of these sectors and hinder their growth.

Coinbase also calls for clear federal and state-level guidelines for centralized crypto entities to ensure accountability and transparency within the industry.

In conclusion, Coinbase urges lawmakers to act swiftly to create a balanced regulatory framework that protects consumers while allowing the crypto industry to grow and innovate. The exchange believes that a well-regulated crypto market will help the US maintain its competitive edge in the global crypto landscape.