Coinbase Urges Congress: Grant CFTC Full Crypto Spot Market Oversight

Coinbase, a leading cryptocurrency exchange, has urged the U.S. Congress to grant the Commodity Futures Trading Commission (CFTC) full regulatory authority over the cryptocurrency spot market. In a proposal submitted to Congress, Coinbase's Chief Policy Officer, Faryar Shirzad, emphasized the need for clear regulatory oversight to ensure market transparency and prevent fraud and manipulation.

The proposal outlines six core recommendations, including:

• Clearly defining tokens and transactions to provide regulatory clarity.
• Granting the CFTC authority over the cryptocurrency spot market, as Bitcoin and Ethereum should be classified as commodities, not securities.
• Establishing Securities and Exchange Commission (SEC) fundraising rules to protect investors.
• Creating a stablecoin regulatory framework to ensure the stability and security of these digital assets.
• Protecting decentralized finance (DeFi) and digital commerce by providing regulatory clarity for these innovative technologies.
• Ensuring regulatory clarity for centralized entities to promote fair competition and market integrity.

Coinbase's proposal comes at a time when the cryptocurrency industry is seeking greater regulatory clarity and oversight. By granting the CFTC full regulatory authority over the cryptocurrency spot market, Congress can help to promote market transparency, prevent fraud and manipulation, and foster innovation in the digital asset space.

The CFTC has historically regulated futures and swaps markets, but its jurisdiction over cryptocurrencies has been a subject of debate. Coinbase's proposal seeks to clarify the CFTC's role in regulating the cryptocurrency spot market, which would provide a more comprehensive regulatory framework for the industry.

As the cryptocurrency industry continues to grow and evolve, regulatory clarity will be essential for its long-term success. Coinbase's proposal is a significant step towards achieving this goal, and it is expected to be a topic of discussion in Congress in the coming months.