Coinbase urges actions of 6 key priorities for cryptographic regulation

The Coinbase Policies Director (CPO) asked US legislators to establish a robust regulatory framework that benefits the cryptographic industry and US investors, suggesting six key priorities to protect users and develop the sector with clear regulations.

Coinbase urges Congress to unlock the industry potential

Cpo de Coinbase, Faryar Shirzad, <a target="_blank" href="https://www.coinbase.com/en-gb/blog/Why-Congress-Must-Act-Clarity-for-crypto-and-Consumer-Protections” target=”_blank” rel=”noopener nofollow”>shared A blog post on Wednesday urges the United States Congress to act quickly in cryptographic regulations, stating that it is time to get away from the unexpected legislation that has harmed the industry potential in the United States.

He pointed out that the lack of regulatory clarity has created an unfavorable, uncertain and risky environment for innovators and consumers, which requires a new regulatory framework to “unlock Blockchain's potential while safeguarding the public.”

Shirzad suggests that Congress must design cryptographic legislation that enables developers to build, protect customers through choice, encourage participation in Blockchain's economy and create railings for centralized intermediaries.

Shizard on why Congress should act swiftly. Source: Coinbase

The Cpo de Coinbase considers that Congress, under the new friendly administration with cryptography, has the opportunity to “promulgate reflexive legislation that provides clarity for innovatives and companies while protecting consumers.”

To achieve a balance between innovation and protection, Shirzad advises the Congress to maintain simple and intuitive rules, making them direct and accessible to all. In addition, legislators should integrate cryptographic legislation without problems instead of “reinventing the wheel” and interrupting existing frameworks.

He added that the protection of decentralized finance (DEFI) and digital trade was crucial, since these areas of avant -garde innovation should remain free of developing without unnecessary restrictions. In addition, Congress must focus on the protection of investors while evading overreach, which could boost innovation on the high seas.

Congress should prioritize clear definitions

Shirzad described six key priorities for Congress to provide clarity and protect customers. First, US legislators must clarify the definition of digital assets, distinguish between values, basic products and other types of tokens.

Second, the CPO de Coinbase considers that Congress must grant the spot market authority of the Basic Products Trade Commerce (CFTC), since digital assets such as bitcoin and ethereum are basic products instead of values . According to the publication, the CFTC must be encouraged to supervise the cryptography market, guarantee transparency and protect clients from fraud and manipulation.

Meanwhile, Shirzad proposed that the United States Congress should lead to the Bag and Securities Commission (SEC) to create rules that allow the collection of responsible funds, noting that developers “need clear roads to raise capital for the projects of Blockchain without each token being treated as security. “

Other key priorities are the establishment of a Stablecoin framework that guarantees that Stablecoins is completely supported and transparent and protecting the defi and digital trade, including the DEFI protocols, intelligent contracts and nft platforms.

Finally, Shizard considers that Congress must guarantee the clarity of centralized entities. He suggested that centralized platforms that the funds of custody users should be regulated to guarantee responsibility and provide customers for confidence.

The publication of the Coinbase blog is produced in the midst of the company's efforts to seek regulatory clarity in the United States. The exchange of encryption recently sent a letter to US regulators, asking for clarity about cryptographic banking barriers.

The exchange urged US regulators to confirm whether banks can offer services to cryptographic companies. Shirzad explained that “they are largely the opinion that we need an integral ecosystem to support the cryptographic economy,” and added: “It is beneficial to have a broad participation in the cryptographic economy.”

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