Coinbase wants to set up a single dedicated body to regulate digital assets, current oversight is too fragmented, and US 100-year-old securities law is inappropriate for today’s securities law. Claims to be. Cryptocurrency market.
In a policy document shared with Congress, the largest crypto exchange in the United States urged legislators to separate surveillance of the digital asset market from other financial markets. Recent spats With the Securities and Exchange Commission.
“To avoid fragmented and inconsistent regulatory oversight of these unique and simultaneous innovations, responsibility for the digital asset market should be assigned to a single federal regulatory agency,” Coinbase said. The Commodity Futures Trading Commission, and certain state systems, said they all oversee parts of the crypto industry.
The company also proposed creating an additional self-regulatory organization (SRO) to support surveillance under this new digital asset regulation system, reflecting traditional financial markets.
Proposals come as tension in between Coinbase The SEC has been escalating in recent months. SEC chair Gary Gensler said in September that Coinbase had not registered with regulatory agencies “despite the dozens of potentially securities tokens.”
CEO Brian Armstrong also in September Blame regulators If you launch a Lend product that would have paid interest on the bet cryptocurrency without registering with the regulatory agency, it is “rough” and opaque after threatening to sue the company. Coinbase later shelved the plan.
Coinbase proposed Thursday that securities legislation in the 1930s struggled to adapt to the current digital market, resulting in the risk of curbing innovation and driving crypto entrepreneurs abroad. Insisted.The first document the Financial Times saw report According to The Wall Street Journal.
Gensler said that many cryptocurrency products could be defined as securities, but said the existing rules were clear enough and could not issue further guidance.In the last few months he Prompted crypto platform Contact the SEC to discuss if you need to register with the SEC.
The regulatory debate revolves around whether digital products are “investment contracts” and therefore are considered securities under federal law. According to what is known as the Howie Test, the Supreme Court makes an investment contract when “a person is led to invest his money in an ordinary business and expect profits solely from the efforts of promoters or third parties.” Decided to exist. ..
“The Howey test plays an important role in defining what security is, but by applying it to digital assets, SEC It’s unclear and inconsistent, “Coinbase said in his proposal.
The company also argued that the decentralized and open source nature of digital assets meant that current disclosure requirements under securities law were not fit for purpose.
“Every owner of a digital asset can explore the function and governance structure of the asset for themselves,” he said. “Applying public company disclosure requirements can mislead the public about what is really important information about digital assets.”
The SEC did not immediately respond to the request for comment.
Coinbase calls for creation of dedicated crypto regulator Source link Coinbase calls for creation of dedicated crypto regulator