United States to form a new crypto regulator to supervise digital asset markets, Coinbase said in a new policy proposal unveiled last week. It cautioned that if the country does not regulate properly, it will fall further “below” other countries.
The plan comes just one day after one of its backers, venture capital company Andreessen Horowitz. Aside from the plan of United States to form a new crypto regulator. Unveiled its own idea for how next-generation internet services, such as blockchain and digital assets, should be controlled. This week, executives from a16z, as the firm is known, planned to meet with government leaders across the country.
Coinbase’s goal is similar to Andreessen Horowitz’s, but with some subtle changes and a stronger concentration on digital assets. While a16z pushed for coordination among regulatory bodies. Coinbase stated in its policy report that digital asset markets should regulated by a single entity.
Wanted to Put a Plan
Faryar Shirzad, Coinbase’s Chief Policy Officer, told CNBC that his team wanted to make a big statement to get people talking.
“We started where a lot of people start,” Shirzad explained, “by taking the existing plurality of regulators. And figuring out what minimal surgery you could do to make things work.” “And then there was a point, maybe three to four weeks ago, where we just kind of looked at each other and said it takes more effort. More intellectual effort, I would say. To try to modify the current system, which is based on an old market structure, than it does to start from scratch.”
He admitted that creating a new agency was not the “least difficult” choice to take.
“I think in the end, because our plan is simply the start of a debate. It also made sense for us not to compromise on the basic points of principle that we think people should. Especially policymakers, should think about it, “he told reporters earlier.
On the last call, Shirzad stated that the company has already visited with roughly three dozen politicians’ offices. As well as several agencies to discuss the proposal’s various components. He described the response from Capitol Hill as “welcoming.”
Clear and Comprehensive Approach
Coinbase wants a “clear and comprehensive strategy to regulate digital assets. And for regulation that is fit for purpose” according to the policy study. It stated that legislation must take into account how technology might benefit the public. And that the United States is already “behind” other governments in developing comprehensive digital asset regulations.
“Without similar steps,” Coinbase wrote, referring to the United Kingdom’s, European Union’s, and Singapore’s “unified approach” to digital assets. “The United States is at risk of becoming a ‘taker’ of regulation rather than the primary’shaper’ of modern financial services. A position the United States has long occupied. “
The company divided their recommendations into four categories:
• Create a new regulatory framework for digital assets that is distinct from the old financial system.
• Assign responsibility for regulating digital markets to a new single federal authority, as well as a nongovernmental self-regulatory organization. Comparable to those that exist in traditional markets.
• Protect holders of digital assets from fraud and market manipulation by requiring disclosures and encouraging openness.
• Encourage fair competition and product compatibility instead.