Coinbase is the largest crypto exchange in the US. And recently, the company has given 4 recommendations for crypto regulation to the government. The company came up with these recommendations after having more than 75 meetings with different government authorities, said CEO Brian Armstrong. So, I believe that the recommendations will be helpful for the government. It will be a matter of time before we know if the government implements these but let’s take a look at them before.
4 recommendations for crypto regulation by Coinbase
The CEO of the company announced that they are launching a Digital Asset Policy Proposal that will help the government to regulate crypto in the US. It will also bring more clarity in the space and make sure that the US stays ahead of other countries. One of the most important things about these recommendations is the fact they are not just about Coinbase. The company had a lot of meetings, and after understanding everything, they have proposed these ideas.
Yes, it is clear that the company needs regulations as they have been told by the SEC not to launch the lending products. And it was not made clear in any way why the SEC did so. Therefore, making the first recommendation, Coinbase said, “We need a new and digitally-native framework for how we regulate digital assets – one that doesn’t encumber innovation, inclusion, and financial empowerment for all sectors of society,”
The second recommendation is as follows: “End-to-end crypto services must sit within a single regulator. Its authority would include a new registration process established for marketplaces for digital assets (MDAs).”
Coinbase also recommended that the SEC focuses on bringing better customer protection by enhancing transparency. And finally, they said that it is important to “promote interoperability and fair competition.”
Regulation is important
Once the SEC brings a more transparent regulatory system, the entire crypto industry will benefit from it. Companies will know what to do, and customers will stay protected due to the more transparent and vigilant system. This is why it will be great if the government actually implements all the recommendations by Coinbase.
What are your thoughts on the 4 recommendations for crypto regulation given by Coinbase? And do you think the government will follow them? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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