Coinbase founder and CEO Brian Armstrong attended the 2019 Consensus Conference at Hilton Midtown in New York City on May 15, 2019.
Steven Federman | Getty Images
Coinbase said that as part of the new policy proposal released on Thursday, the United States should establish a new regulatory agency to oversee the digital asset market. It warned that failure to properly regulate could put the country further behind the curve.
The proposal came after one of its investors, venture capital firm Andreessen Horowitz, released its vision on how to regulate next-generation Internet services including blockchain and digital assets. As we all know, a16z executives plan to meet with leaders of various government departments this week.
Coinbase’s vision overlaps with Andreessen Horowitz’s vision, but contains some nuances and is more focused on digital assets. Although a16z advocates cross-regulatory cooperation, Coinbase stated in its policy report that there should be only one regulator in the digital asset market.
Coinbase Chief Policy Officer Faryar Shirzad told CNBC that his team intends to develop a bold plan to spark discussion.
Shirzad said: “We started with a lot of people. This is to take advantage of the diversity of existing regulatory agencies and try to figure out the smallest surgery that can be done to make things work.” “Then there is a moment, maybe three to three. Four weeks ago, we just looked at each other and we said that more effort is needed to try to adapt to the current system based on the old market structure — more I would like to talk about intellectual efforts — rather than starting from scratch.”
He acknowledged that forming a new institution is certainly not the “least resistance” path, but said they want to start a wider discussion.
“I think what is our final thought, because our proposal is only the beginning of the dialogue, and we should not compromise on the core principles that we think people and policy makers should consider,” he said. Said in an earlier phone call with reporters.
Shirzad said in an earlier conference call that the company has met with about three dozen parliamentarian offices and several agencies to discuss various aspects of the proposal. He said that so far, the feedback from Capitol Hill has been “welcome.”
In general, Coinbase stated in its policy report that it hopes to “have a clear and comprehensive approach to the regulation of digital assets and conduct appropriate supervision”. It stated that regulation needs to recognize how technology can benefit the public, and warned that the United States has “lagged” behind other governments in developing comprehensive digital asset regulation.
“If similar measures are not taken,” Coinbase wrote, citing the “unified approach” adopted by the United Kingdom, the European Union, and Singapore for digital assets, “the United States may become the’acceptor’ of regulation, rather than the main’modern finance’ The shaper of service-the position the United States has occupied for a long time.”
The company breaks down its recommendations into four pillars:
- Create a new regulatory framework for digital assets, separate from the regulatory framework of the traditional financial system.
- Assign the responsibility for regulating the digital market to a new single federal agency and a non-governmental self-regulatory organization similar to the traditional market.
- Protect digital asset holders from fraud and market manipulation, and require disclosure of information to increase transparency.
- Promote fair competition and interoperability between products.
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