Coinbase, a leading U.S.-based cryptocurrency exchange, is ramping up pressure on Congress to tackle the country’s outdated crypto regulations. In a bold Feb. 19 blog post, Faryar Shirzad, Coinbase’s chief policy officer, outlined six legislative priorities aimed at fixing what the company calls “broken crypto laws.” The goal? Protect consumers, foster innovation, and stop blockchain pioneers from heading overseas.
Shirzad pulled no punches, warning of the dangers of inaction. “The risks of inaction are clear,” he wrote. “Without regulatory clarity, the U.S. will continue to lose its edge in blockchain innovation. Developers and businesses will seek opportunities abroad, and consumers will remain vulnerable to fraud and systemic failures.”
Coinbase’s Six Legislative Priorities
The first priority is defining digital assets and transactions. Coinbase wants Congress to create clear legal definitions, distinguishing between securities, commodities, and other token types. This would provide much-needed clarity for builders, investors, and consumers navigating the crypto space.
Second, Coinbase is pushing for the Commodity Futures Trading Commission (CFTC) to have authority over the crypto spot market. The company argues that digital assets like Bitcoin and Ethereum are commodities, not securities, and should be regulated accordingly. Empowering the CFTC, Coinbase says, would ensure transparency and protect consumers from fraud and manipulation.
Next on the list is establishing clear Securities and Exchange Commission (SEC) rules for blockchain developers. These rules would make it easier for crypto projects to raise capital without being burdened by outdated securities classifications.
The fourth priority focuses on stablecoins. Coinbase advocates for a robust framework to ensure these digital currencies are fully backed, transparent, and competitive within the financial system.
Protecting decentralized finance (DeFi) and digital commerce is the fifth priority. Coinbase emphasizes the need for regulations that allow DeFi platforms, smart contracts, and NFTs to thrive without unnecessary restrictions.
Finally, the sixth priority calls for clear oversight of centralized crypto entities like exchanges and custodians. While centralized platforms should follow state or federal rules, Coinbase insists that decentralized alternatives must also have room to grow.
A Call for Action
Coinbase’s message is clear: U.S. lawmakers must act swiftly to create balanced, accessible legislation. Shirzad stressed that effective rules don’t need to be overly complex. “Policymakers, developers, and the public don’t need to be crypto experts to understand these rules,” he stated.
With the global blockchain race heating up, Coinbase believes these six steps are critical to keeping the U.S. at the forefront of innovation while safeguarding consumer interests. The clock is ticking, and the stakes couldn’t be higher.
