Coinbase, one of the leading exchanges, has publication Regulatory guidelines as part of the Digital Asset Policy Proposal (DAPP). At the same time, they also called for “regulatory security for all” by calling it “a time of dynamic and broad-based financial innovation in the United States”.

What did Coinbase recommend?

Due to the increasing acceptance of crypto and regulatory uncertainty, Coinbase has outlined a “four pillar” approach to regulating the crypto sector.

• First: regulate digital assets in a separate framework.
• Second, designate a single regulator for the digital asset market.
• Third, protect and empower the owners of these assets.
• Finally, regulators promote interoperability and fair competition in this area.

Why is Coinbase making these recommendations?

According to Coinbase, “Laws that were drawn up in the 1930s to facilitate effective oversight of the financial system are no longer relevant to this technological revolution”. The proposal comes amid a series of raids by the SEC.

Last month, Coinbase canceled the launch of its Lend product after the watchdog threatened a lawsuit. At that time, the SEC referred to the interest-bearing product as a “security”. The definition of a security is legally controversial and also the basis of the legal dispute between Ripple and the SEC. Therefore, the main idea of ​​the proposal remains the development of “existing frameworks”.

Although Coinbase is a legal and public institution in the United States, it is subject to a number of regulations, including the Bank of America Secrecy Act (BSA). However, problems arose when many regulators such as the US Treasury Department, the SEC, the US Federal Reserve (Fed), the Commodity Futures Trading Commission (CFTC), etc. referred to them.

According to Coinbase, a single regulator would “avoid distributed and inconsistent regulatory reviews”. While there is currently no single entity overseeing crypto activities, SEC chairman Gary Gensler recently suggested that Congress should introduce specific laws.

The same was suggested by Stephen Palley of Anderson Kill:

“Just as it made no sense for the FTC to administer federal securities laws in 1933, the question arises whether the current supervisory authorities – again for a long time – are suitable for DeFi in particular or cryptocurrencies in general.”

Recognizing the risks in the sector, Coinbase has also called for greater transparency, fraud protection and building market resilience for asset class owners while promoting innovation, responsible and fair competition.

Will the proposal be accepted by Coinbase?

According to Coinbase, the goal is to get involved in the debate about a single asset class and the decentralized internet. In addition, the company opened the discussion about the proposal on GitHub. The need and extent of regulation, however, is a hot topic that requires alignment of state and federal law, as well as other banking and securities regulations.

Commissioner Hester M. Peirce has submitted her updated Safe Harbor Proposition for discussion with the SEC. In a recent interview, she urged people to be careful.

“I think we all got a lesson in reading securities laws.”

Against this background, attorney Noah Axler recently highlighted the split in the SEC. Additionally, according to Sullivan & Cromwell Senior President Rodgin Cohen, the key regulatory changes needed in the United States are:

“Some health and safety rules are required. Real modernization ”.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Mr. Teacher

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page