Coinbase Responds To Commissioner Peirce’s Request On Digital Asset Regulations

Coinbase has submitted a response to Commissioner Peirce’s request, contributing to ongoing discussions on digital asset regulations. This follows an extended period of engagement, beginning with Coinbase’s initial petition for regulatory changes.

The company emphasizes the importance of collaboration among industry participants, regulators, and legislators to ensure the seamless integration of digital assets into the financial system.

Coinbase Engages With U.S. Regulators To Shape Crypto Rules

Lately, the United States has seen big moves in crypto rules. The President has signed papers to push the country forward in digital assets and has met with crypto leaders. At the same time, lawmakers are working on new rules for stablecoins and other digital assets.

The SEC has also started a special team to update market rules so digital assets can grow while giving clear guidance. These steps have been expected by the industry, including Coinbase.

In its answers, Coinbase thanks the SEC for talking with businesses and working toward clearer rules. The company has already had useful talks with the SEC’s team and other officials. Coinbase sees this as a good sign for working together in the future.

Coinbase says these talks must continue since many questions remain. It has listed 36 ideas to help the SEC build better rules for digital assets. One key idea is to clearly separate digital commodities from securities.

Digital assets that do not give control over a business should be treated as commodities, not securities. This would remove confusion and give needed guidance.

Coinbase Pushes For Clearer Regulations And Industry Collaboration

Coinbase also says that when digital commodities are sold in secondary markets, those trades should not be treated as securities transactions. If the SEC makes this clear, the industry could avoid extra hurdles and move forward without problems.

At the same time, the SEC has taken action against Coinbase, saying it ran its trading platform without the right approvals and failed to follow the rules for its staking program.

Coinbase is asking the SEC to work with lawmakers to build a full set of rules for digital assets. The company says the SEC should give guidance, but lawmakers should make final decisions, especially where there is uncertainty.

The company also supports rules that make room for blockchain to improve financial markets. The company points to tokenized debt, equity, and investment funds as big opportunities.

Clear rules on instant trade settlements, self-custody, and asset transfers could open a new market for tokenized securities. Coinbase’s response shows its push for clear and fair rules. The company believes that fixing key issues like defining digital commodities and supporting tokenized securities will help both businesses and investors.

Coinbase also says banks and asset managers should be involved, as many want to use blockchain in their work. The company notes that public support has helped bring crypto issues to national attention and urges people to stay involved in shaping the rules.