Coinbase is urging Congress to act fast, outlining six priorities to fix broken crypto laws, protect consumers, and stop blockchain innovation from fleeing overseas.
6 Priorities Coinbase Is Pushing to Fix America’s Broken Crypto Law
Crypto exchange Coinbase (Nasdaq: COIN) is urging Congress to take action on crypto regulation, outlining six “key legislative priorities” needed to provide clarity for innovators and protect consumers.
In a Feb. 19 blog post, Faryar Shirzad, Coinbase’s chief policy officer, stressed that the lack of clear regulations is driving blockchain innovation overseas and leaving millions of American crypto users exposed to risks. He emphasized the need for accessible legislation, stating: “Policymakers, developers and the public don’t need to be crypto experts to understand these rules. Legislation should be accessible and straightforward, avoiding unnecessary complexity.” Coinbase argues that establishing clear rules will ensure the U.S. remains a leader in digital asset innovation.
Coinbase detailed that the first priority is defining digital assets and transactions, ensuring legal clarity for builders, investors, and consumers by distinguishing between securities, commodities, and other token types. The second priority is granting the Commodity Futures Trading Commission authority over the crypto spot market, as Coinbase states:
Digital assets like bitcoin and ethereum are commodities, not securities. Legislation must empower the Commodity Futures Trading Commission (CFTC) to oversee the crypto spot market, ensuring transparency and protecting consumers from fraud and manipulation.
The third priority is establishing clear Securities and Exchange Commission (SEC) rules for capital raising, allowing blockchain developers to fund projects without restrictive securities classifications. The fourth priority is creating a stablecoin framework, ensuring these digital assets are fully backed, transparent, and foster competition within the financial system. The fifth priority is protecting decentralized finance (defi) and digital commerce, ensuring smart contracts, defi platforms, and non-fungible tokens (NFTs) can operate without excessive regulation. The final priority is clarifying oversight for centralized crypto entities, ensuring exchanges and custodians follow clear state or federal regulations while allowing decentralized alternatives to thrive.
Shirzad warned of the dangers of inaction, stating:
The risks of inaction are clear. Without regulatory clarity, the U.S. will continue to lose its edge in blockchain innovation. Developers and businesses will seek opportunities abroad, and consumers will remain vulnerable to fraud and systemic failures.
Coinbase argues that addressing these six priorities will create a balanced regulatory framework that supports innovation while protecting users.
Source: Bitcoin
