Coinbase Urges Congress to Revamp Crypto Laws with Six Key Priorities

Coinbase, a major player in the crypto exchange space, is calling on Congress to step up and tackle the messy state of crypto regulation in the United States. The company has laid out six critical priorities aimed at straightening out the legal tangle, safeguarding consumers, and keeping blockchain innovation from packing up and heading overseas. With the current lack of clarity pushing developers abroad and leaving American crypto users exposed, Coinbase is pressing for action.

Faryar Shirzad, the chief policy officer at Coinbase, made the case plain in a blog post. He pointed out that the absence of clear rules is a growing problem, one that’s driving talent and opportunity out of the country while putting millions of users at risk. Shirzad stressed that any new legislation needs to be straightforward and easy to grasp. Policymakers, developers, and everyday people shouldn’t need a PhD in crypto to make sense of it. The goal, he argued, is to craft laws that keep things simple while ensuring the U.S. stays ahead of the curve.

So, what exactly is Coinbase pushing for?

First up is a clear definition of digital assets and transactions. Sorting out what’s a security, what’s a commodity, and what falls into other categories would give builders, investors, and consumers a solid foundation to work from.

Next, Coinbase wants the Commodity Futures Trading Commission to take charge of the crypto spot market. Assets like Bitcoin and Ethereum, they say, are commodities—not securities—and putting the CFTC in the driver’s seat would bring transparency and shield users from fraud or shady dealings.

Then there’s the need for the Securities and Exchange Commission to set practical rules for raising capital. Blockchain projects should be able to fund themselves without getting bogged down by overly strict securities labels.

A Framework for Stability and Innovation

Beyond that, Coinbase is calling for a stablecoin framework that ensures these assets are fully backed, open about their operations, and able to compete in the financial world.

They also want protections for decentralized finance and digital commerce. Think smart contracts, DeFi platforms, and NFTs, so these technologies can grow without being smothered by red tape.

Finally, Coinbase is asking for clear oversight of centralized crypto players like exchanges and custodians. Whether it’s state or federal rules, the key is consistency, while still leaving room for decentralized options to flourish.

Shirzad didn’t mince words about what’s at stake. If Congress drags its feet, the U.S. could lose its edge in blockchain tech. Developers and businesses will keep looking abroad for friendlier environments, and consumers will stay stuck dealing with fraud risks and shaky systems. Coinbase sees these six priorities as the path to a balanced setup, one that fuels innovation and keeps users safe without stifling the potential of digital assets.

The push comes at a pivotal moment. Crypto’s footprint is growing, and the U.S. has a shot to lead the charge if it can get its regulatory house in order. Coinbase is betting that clear, sensible laws will not only protect the millions of Americans already in the crypto space but also draw in new talent and investment. The clock’s ticking, and the message to Congress is loud and clear— act now, or watch the future of finance slip away.