Coinbase’s Chief Policy Officer (CPO), Faryar Shirzad, has called on US lawmakers to create a comprehensive regulatory framework that will support the growth of the cryptocurrency industry and protect American investors. In a blog post shared on Wednesday, Shirzad outlined six key priorities that he believes are essential for the development of the sector and the protection of users.
Shirzad emphasized the need for regulatory clarity in the cryptocurrency space, stating that the current lack of clear regulations has created an uncertain and risky environment for both innovators and consumers. He urged Congress to move away from the restrictive legislation that has hindered the industry’s potential in the US and to instead focus on unlocking the benefits of blockchain technology while safeguarding the public.
One of Shirzad’s key recommendations is for Congress to establish clear definitions for digital assets, distinguishing between securities, commodities, and other types of tokens. He also suggested granting the Commodity Futures Trading Commission (CFTC) authority over the crypto spot market to ensure transparency and protect customers from fraud and manipulation.
Additionally, Shirzad proposed that the Securities and Exchange Commission (SEC) create rules that allow for responsible fundraising in the blockchain space, without treating every token as a security. He also called for the establishment of a Stablecoin framework to ensure that stablecoins are fully backed and transparent, as well as protections for Decentralized Finance (DeFi) and digital commerce.
In order to strike a balance between innovation and protection, Shirzad advised Congress to keep the regulatory rules simple and intuitive, making them accessible to everyone. He also stressed the importance of integrating crypto legislation seamlessly into existing frameworks, rather than reinventing the wheel and disrupting the industry.
Coinbase’s push for regulatory clarity comes as the company seeks to navigate the complex regulatory landscape in the US. The exchange recently sent a letter to US regulators seeking clarity on banking barriers for crypto businesses, emphasizing the need for a comprehensive ecosystem to support the crypto economy.
Overall, Shirzad’s call to action for Congress to prioritize clear definitions, investor protection, and regulatory clarity reflects the growing importance of establishing a robust regulatory framework that will benefit the cryptocurrency industry and American investors. As the industry continues to evolve, it is crucial for lawmakers to act swiftly and decisively to unlock the full potential of blockchain technology while safeguarding consumers.