Coinbase Submits Regulatory Roadmap to SEC for Crypto Clarity

Coinbase, a prominent cryptocurrency exchange, has submitted a detailed regulatory roadmap to the US Securities and Exchange Commission (SEC) in an effort to enhance clarity within the digital asset sector. The proposal, which follows a request from SEC Commissioner Hester Peirce, who leads the agency’s crypto task force, outlines a framework for distinguishing between digital commodities and securities. This distinction is pivotal for establishing a regulatory environment that can effectively manage the rapidly evolving crypto market.

The exchange's chief policy officer, Faryar Shirzad, emphasized the importance of a transparent and collaborative process in shaping regulations that provide clarity and certainty for developers, clear rules for industry players, and effective protections for investors. Coinbase's recommendations focus on four core elements essential for a well-functioning digital asset market. These include the need for the SEC to establish a clear taxonomy that differentiates digital commodities from securities. According to Coinbase, digital assets that do not grant rights in a business enterprise should be classified as commodities, not securities.

Coinbase argued that differentiating between digital commodities and securities would allow traditional financial instruments to move on-chain. This shift could enhance global liquidity, streamline asset transfers, and lower operational costs by eliminating inefficiencies tied to outdated, paper-based market systems. The exchange also urged the SEC to abandon its classification of secondary market sales of digital commodities as securities transactions, asserting that regardless of how a digital asset is initially issued, its secondary market transactions should not be treated as securities trades.

Beyond SEC-specific reforms, Coinbase called on the agency to defer broader market framework development to Congress. It noted that while the agency plays a role in shaping regulations, lawmakers should be the ones to define regulatory boundaries and resolve existing uncertainties. The exchange further called for regulations that support the growth of tokenized securities, proposing targeted policy changes to align rules with blockchain’s economic realities and unlocking new opportunities in financial markets.

Shirzad concluded that directly addressing these core points will provide clarity that will enable the SEC, other federal agencies, and Congress to efficiently address additional questions vital to the industry’s future in the US. Clear guidance will also rapidly accelerate the adoption of more on-chain tools that bring traditional finance into the current age, with the US leading the way. This push for regulatory clarity is part of a broader effort to ensure that digital assets are treated fairly and that the industry can operate within a clear legal framework, which is particularly important as the crypto market continues to attract institutional investors and as more regions look to regulate digital assets.