Call for Clear Crypto Regulations: Coinbase Urges Congress to Act
Coinbase’s Chief Policy Officer, Faryar Shirzad, has issued a plea to the US Congress to pass comprehensive and clear regulations for the cryptocurrency industry. In a recent policy letter titled “Why Congress Must Act: Clarity for Crypto and Consumer Protections,” Coinbase emphasized the critical need for legislative clarity in the digital asset space. The exchange highlighted that blockchain technology is reshaping the global economy, and without proper regulations, innovation could be stifled and consumers left vulnerable.
Urgent Need for Legislative Clarity
Shirzad stressed that the absence of clear legislation in the United States hinders potential growth, exposes consumers to risks, and drives innovation overseas. Coinbase urged lawmakers to create a regulatory framework that not only fosters innovation but also ensures consumer protection.
Key Legislative Priorities
- Defining digital assets
- Granting oversight of crypto spot markets to the Commodity Futures Trading Commission (CFTC)
- Establishing clear rules for stablecoins and capital raising
- Distinguishing between securities and commodities
Coinbase also emphasized the need to protect decentralized finance (DeFi) and digital commerce from regulatory overreach while setting high transparency and security standards for centralized platforms that custody customer funds. The company warned that without regulatory clarity, the US risks losing its edge in blockchain innovation.
Shifting Regulatory Landscape
While the Biden administration and former SEC Chair Gary Gensler took a strict stance on digital assets, the new administration under Trump has shown a more positive outlook. Industry leaders are hopeful for balanced regulatory discussions and a focus on fostering innovation rather than enforcement actions.
Coinbase highlighted that over 52 million Americans are involved in crypto, underscoring the need for legislative action to maintain US leadership in the global digital economy. Passing thoughtful legislation, according to Shirzad, will not only protect consumers but also empower them to fully participate in the blockchain economy.
Empowering Innovation and Consumer Protection
Coinbase believes that thoughtful regulation can empower developers, protect consumers, and position the US as a global leader in digital assets. However, hesitation and uncertainty could drive the industry to other countries, resulting in missed opportunities and economic costs.
