Coinbase Pressures Congress to Reform Crypto Laws, Outlines Six Key Priorities
Coinbase is urging Congress to address outdated and inconsistent crypto regulations in the U.S., proposing six key priorities to establish clear rules, protect investors, and support industry growth.
Chief Policy Officer Faryar Shirzad emphasized the need for a balanced approach that fosters innovation while ensuring consumer protection. The exchange warns that without decisive legislative action, the U.S. risks losing its leadership in blockchain technology, pushing developers and businesses overseas while leaving consumers vulnerable to fraud.
Among Coinbase’s top priorities is defining digital assets to clarify distinctions between securities, commodities, and other tokens. This would help protect investors and bring much-needed transparency to the market. The company also advocates for the Commodity Futures Trading Commission (CFTC)—rather than the Securities and Exchange Commission (SEC)—to regulate crypto spot markets, particularly for Bitcoin and Ethereum. This approach aligns with previous policies favoring a lighter regulatory framework under the CFTC.
Coinbase is also calling for clear capital-raising guidelines to prevent all blockchain projects from being classified as securities, pushing for the SEC to adopt a transparent framework. Additionally, the exchange wants stablecoin regulations that require full asset backing and proper oversight to ensure financial stability.
Another critical issue is the protection of decentralized finance (DeFi) and digital commerce. Coinbase warns that excessive regulation could stifle DeFi platforms and NFT markets, slowing innovation. The company also stresses the need for a well-defined legal framework for centralized crypto businesses, including exchanges and custodians, to ensure they operate under clear state or federal guidelines.
Beyond regulatory advocacy, Coinbase has been engaged in legal disputes with federal agencies, including the Federal Deposit Insurance Corporation (FDIC), accusing regulators of withholding key oversight documents. Chief Legal Officer Paul Grewal recently testified before Congress on the issue of crypto debanking, reinforcing the company’s stance on fair regulation.
Looking ahead, Coinbase anticipates a more favorable regulatory environment in 2025, potentially paving the way for stronger crypto market growth in the U.S.
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