On Thursday, the Coinbase cryptocurrency exchange released its Digital Asset Policy Proposal, a document that provides both a rationale and a conceptual framework for the comprehensive regulation of digital assets in the United States.
Coinbase presented the proposal as a result of dozens of meetings with industry participants, policy makers, crypto innovators, and academics that the company’s representatives had held over the past few weeks.
The company’s intention is to propose “to encourage an open and constructive discussion about the role of digital assets in our common economic future” and to make in good faith suggestions about what a reasonable approach to crypto regulation might look like.
The document begins by enumerating the benefits of the emerging digital financial system for both consumers (democratization of financial markets) and regulators (more transparency and new ways to combat illegal activity). The authors further claim that laws drafted in the 1930s are a poor foundation for regulating the internet native asset class and that forcing digital assets into the legal framework developed before the computer age could lead to Stifling crypto innovations in the US
According to Coinbase, a tailored and therefore more constructive approach should be based on four key principles: defining a separate regulatory framework for digital assets; Designation of a single regulator to oversee digital asset markets; Protecting and empowering owners and promoting interoperability and fair competition.
In a separate comment published the same day in the Wall Street Journal, Coinbase CEO Brian Armstrong argued that the proposed framework is not only intended to benefit his company.
He claimed that while Coinbase was big enough to bear the cost of an unclear regulatory environment, smaller businesses, retail customers, and the U.S. position as a global technology leader could benefit from forward-looking regulation of the digital asset space.