Cryptocurrency exchange Coinbase (NASDAQ: COIN) has released a regulatory framework proposal to promote constructive discussions on digital assets across the United States.
In a blog post, Coinbase stated that the framework dubbed ‘Digital Asset Policy Proposal: Safeguarding America’s Financial Leadership (dApp)‘ aims to offer suggestions on how the country can manage the crypto sector.
Coinbase’s proposals aim to develop a blockchain-driven and decentralized evolution of the internet. Additionally, the exchange also seeks to offer suggestions on the emergence of a distinctive asset class.
In coming up with the proposal, Coinbase indicated that it held consultations with industry experts, crypto builders, opinion leaders, and policymakers across the U.S.
In the post, Coinbase highlights that with the crypto sector recording $2 trillion in market capitalization in 2021 alongside over 300 million users globally, it is time to regulate the industry fully. The exchange singles out factors like faster payments that can also benefit the government.
According to Coinbase, the regulation of digital assets should be under a different framework alongside having a designated single regulator for the sector. Furthermore, the framework is anchored on the pillar of protecting and empowering cryptocurrency owners.
“To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility for digital asset markets should be assigned to a single federal regulator. Its authority would include a new registration process established for entities that serve as marketplaces for digital assets (MDAs) and an appropriate disclosure regime to inform purchasers of digital assets,” Coinbase said.
Risk of lagging behind
At the same time, Coinbase notes that an ideal regulatory framework should promote interoperability and fair competition. The exchange further warns that failure to regulate the sector appropriately could leave the U.S. even further behind other jurisdictions.
The exchange maintains that failure to regulate the sector results in millions of exclusions from the financial system while acknowledging that most Americans are looking for alternatives to traditional finance.
Coinbase points out that the current financial sector laws drafted in the 1930s are outdated to keep up with the revolutionary crypto sector.
The report comes barely a day after venture capital firm Andreessen Horowitz released its proposal on how next-generation internet services, including blockchain and digital assets, should be regulated. In this line, executives from the firm are scheduled to meet with Congress and the White House leaders.
The exchange’s proposal is likely to carry weight, considering it has grown to become one of the formidable mainstream crypto companies. The company that went public in April 2021 has recently diversified its product offerings.
Coinbase NFT product waitlist surpasses 1 million sign-ups
Recently, the exchange’s new non-fungible token (NFT) venture is gaining momentum, with its waitlist hitting 1.35 million sign-ups on the first day of launch.
In the wake of the development, the Coinbase stock has surged over 5%. Notably, the stock has been on the rise since Monday, correlating with the surge in the value of Bitcoin and Ethereum.
Also, the stock’s progress will potentialy be influenced in the coming months when the company announces its third-quarter results.