Coinbase has called for the creation of an independent body to regulate digital assets, saying the current control is too fragmented and that US century-old security rules are inappropriate. Cryptop Markets.
In a policy document shared with Congress, the largest US cryptocurrency exchange urged lawmakers to separate control of the digital asset market from other financial markets. Recent saliva With the Security and Exchange Commission.
“Responsibility for digital assets markets should be delegated to a federal regulator to avoid fragmented and inconsistent regulatory oversight of these unique and timely innovations,” said Coinbase, SEC, the Commodity Futures Trading Commission and certain regional governments overseeing all sectors. The crypto industry.
The company is also proposing to create an additional self-regulatory body or SRO to support the control of this new digital asset control system by reflecting traditional financial markets.
The proposals come as stress Coinbase And the SEC has worsened in recent months. Gary Gensler, SEC chairman, said in September he was not registered with the Coinbase regulator “although they may have secured dozens of tokens”, characteristic that the company argued.
CEO Brian Armstrong in September You sued the supervisor. The “draft” and the lack of transparency have threatened to sue the company if it launches a loan to pay interest on cryptocurrencies seized without registering with the lender. Coinbase later laid out the plans.
In a statement on Thursday, Coinbase argued that while security laws enacted in the 1930s struggled to adapt to existing digital markets, as a result, they could stifle innovation and drive crypto entrepreneurs off the coast. The document was first published in the Financial Times. Reported In the Wall Street Journal.
Although Gensler said many crypto products could be described as guarantees, he did not provide further guidance, saying the current rules are fairly clear. In recent months he has Concerned crypto platforms To contact the SEC and discuss whether they should register with the agency.
Control disputes are partly due to the fact that digital products are “investment contracts,” and therefore are considered as guarantees in federal law. The Supreme Court has ruled that there is an investment agreement, known as the Hawaii test, “when a person invests money in a joint venture and only expects to make a profit from the efforts of the advertiser or a third party.”
“While the Hawaii test has played an important role in defining security, its application to digital assets SEC Be vague and inconsistent, ”Coinbase commented.
The decentralized and open source nature of digital assets argues that current disclosure requirements in security laws are not objective.
“Every digital asset owner can examine the functionality and management structure of the property for themselves,” he said. “Implementing public company disclosure requirements may mislead the public about what digital assets are.”
The SEC did not immediately respond to requests for comment.
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