Coinbase says the United States needs to create a new cryptocurrency regulator

Brian Armstrong, Founder and CEO of Coinbase, will attend Consensus 2019 at Hilton Midtown on May 15, 2019 in New York City.

Stephen Feldman | Getty Images

The United States needs to create a new regulatory agency to oversee the digital asset market. Coinbase He said in a new policy proposal announced Thursday. The country warned that if not properly regulated, it could be placed further “behind” other governments.

The proposal will be made the day after Andreessen Horowitz, a venture capital firm, one of the investors. Announce your own vision How to regulate next-generation Internet services, including blockchain and digital assets. As the company is known, a16z executives were scheduled to meet with government-wide leaders this week.

Coinbase’s vision overlaps with Andreessen Horowitz’s vision, but it contains some subtle differences and is more closely focused on digital assets. While a16z advocated collaboration between regulators, Coinbase said in a policy report that there should be only one regulator in the digital asset market.

Faryar Shirzad, Coinbase’s Chief Policy Officer, told CNBC that his team wanted to deliberately make bold plans and spark controversy.

“We started where a lot of people started. It’s hiring a variety of existing regulators and trying to find the minimum surgery you can do to get things working,” Shirzad said. Told. “And maybe three or four weeks ago, there was a time when we stared at each other for a moment. [and] We said that adapting the current system, which presupposes the old market structure, requires more intellectual effort than starting from scratch. “

He admitted that establishing a new institution was certainly not the path of “minimal resistance.”

“Our proposal is just the beginning of a conversation, so the last thing we think of is that it makes sense not to compromise on the core of the principles we think policy makers should think. I think, “he said. Said on a previous phone call with a reporter.

Silzad said in a previous phone call that the company had already met with about 30 parliamentary offices and several agencies to discuss aspects of the proposal. He said feedback from Capitol Hill has been “welcome” so far.

In general, Coinbase states in its policy report that it wants a “clear and comprehensive approach to regulating digital assets and achieving purposeful regulation.” Regulations need to be aware of how technology can benefit the public, and the United States is already “lagging behind” other governments in creating comprehensive digital asset regulations. I warned.

Coinbase referred to the “unified approach” to digital assets adopted by the United Kingdom, the European Union and Singapore, saying “we have not taken similar steps” and “the United States is not a major regulation, but a regulation. There is a risk of becoming an “acquirer”. ” The Former of Modern Financial Services — A long-held position in the United States. “

The company has broken down the proposal into four main pillars.

  • Create a new framework for regulating digital assets that is separate from the traditional financial system.
  • It gives a new single federal authority the responsibility to regulate the digital market, in addition to the non-governmental self-regulatory organizations that exist in the traditional market.
  • Require disclosure to protect digital asset holders from fraud and market manipulation and to promote transparency.
  • Promotes fair competition and interoperability between products.

Subscribe to CNBC on YouTube.

See: El Salvador mines volcanoes and Bitcoin with the latest cryptocurrency push Coinbase says the United States needs to create a new cryptocurrency regulator

Back to top button