Coinbase has ended up filing a petition that’s to the Security and Exchanges Commission. This petition criticizes how cryptocurrency is currently being regulated within the US. The Chief Policy Officer from Coinbase, Faryar Shirzad, talked about the reasons behind why they filed their petition, through a blog post. He said that in case there is no effective regulation within the United States. Then they could end up falling behind when it comes to asset innovation that is digital.
Coinbase Files A Petition
Shirzad went on to talk about foundational hurdles when it comes to cryptocurrency securities. It’s this foundational hurdle that has inhibited the market from maturing as best as it could. This hurdle is that the rules for securities don’t work the same way for native instruments that are digital.
There should be an updated rulebook when it comes to securities that are cryptocurrency assets. This can help guide practices that are safe and efficient. As for cryptocurrency assets that aren’t securities, they need the certainty that they can exist outside those rules.
If this doesn’t happen then incumbent technologies will be entrenched at the expense of not just innovation alone, but also the consumers. Paul Grewal, the Chief Legal Officer of Coinbase, outlines what were considered key challenged when it came to the regulation of cryptocurrencies. This includes a less clarity regarding what digital assets are actually securities. Great also ended up listing various questions that the SEC could consider, when creating their regulatory framework.