Cryptocurrency exchange Coinbase laid out its policy vision Wednesday, urging Congress to pass legislation that gives clarity for the digital assets industry and protects consumers.
The blueprint, written by Coinbase Chief Policy Officer Faryar Shirzad, breaks down what the exchange believes Congress should prioritize when crafting legislation. Shirzad issued a stark warning against inaction, suggesting the U.S. will fall behind on the global stage is “thoughtful legislation” is not passed.
“Developers and businesses will seek opportunities abroad, and consumers will remain vulnerable to fraud and systemic failures,” Shirzad wrote, adding later, “This is about more than regulating a new technology – it’s about securing America’s future in a rapidly evolving digital landscape.”
The blog post comes as the Trump administration and various policymakers in Congress embrace the cryptocurrency industry after years of hostility from the Biden administration, which went after crypto giants like Coinbase.
In an effort to turn the page in Washington, Coinbase poured millions into the 2024 race to elect pro-crypto candidates and already have their sights set on 2025 and 2026 races.
Amid the tensions between the last administration and the industry has been a lack of regulatory clarity. Shirzad argued the unclear regulations have left innovators uncertain while exposing consumers to risk.
“Blockchain technology and digital assets are reshaping the global economy, bringing opportunities for innovation, financial inclusion, and economic growth,” Shirzad wrote. “Yet, the absence of clear legislation in the United States stifles this potential, leave consumers exposed, and drives innovation overseas.”
Coinbase’s legislation wish list includes measures that will clearly define digital assets to help Americans distinguish between securities, commodities and other tokens, along with creating clear rules on how developers can raise capital for blockchain projects without every token being considered a security.
One of the most notable asks from Coinbase is to give the Commodity Futures Trading Commission (CFTC) oversight of crypto spot trading, where assets are bought and sold for immediate delivery.
By empowering the CFTC, Shirzad said this will ensure transparency and protect “consumers from fraud and manipulation.”
Coinbase also called for a stablecoin framework and the protection of decentralized finance and digital commerce platforms, stating the latter must be free from “burdensome regulation.”
“Stablecoins play a critical role in the digital economy by bridging crypto and fiat currencies,” Shirzad wrote. “Legislation should ensure stablecoins are safe, fully backed and transparent while fostering competition and innovation in the marketplace.”
