Coinbase Proposes Creation of New Cryptocurrency Oversight Body

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Brian Armstrong, CEO of US-based crypto exchange Coinbase, has suggested that the US authorities create an agency with powers in the field of digital assets at the federal level.

The initiative arose after the exchange suspended the launch of crypto-saving accounts due to claims from the SEC. The regulator had earlier warned Coinbase about possible legal actions against the company.

The conflict has prompted the company to develop a draft federal regulatory framework for consideration by US legislators.

Coinbase’s finalized plan proposes a radical overhaul of US financial regulation and has four main pillars:

• Regulation of digital assets within the new structure.
• Appointment of a single regulatory body.
• Protecting and empowering digital asset owners.
• Promoting interoperability and fair competition.

The proposals are based on feedback from over 75 meetings with legislators, industry and academia.

Faryar Shirzad, director of policy at Coinbase, said:

“We have come to the conclusion that there is no point in transforming this or that regulator because of the specifics of the technology underlying digital assets.”

According to the top manager, the proposals will be sent to the SEC for consideration. Shirzad has clarified they do not apply to Bitcoin and Ethereum (the Commission did not consider them as securities) and truly decentralized organizations. In the latter case, “there is nothing to regulate,” he added.

Coinbase has offered to join the discussion on the proposals on GitHub.