Coinbase has put forward a regulatory blueprint for digital assets, urging the US Securities and Exchange Commission (SEC) to establish clearer guidelines.
The proposal follows a request from SEC Commissioner Hester Peirce, who leads the agency’s crypto task force, for input on regulatory clarity.
According to the exchange, this move aligns with growing efforts to create a well-defined framework for the crypto industry.
Coinbase’s chief policy officer Faryar Shirzad said:
“A transparent and collaborative process will help the agency and market participants shape regulations that can provide clarity and certainty for developers, clear rules for industry players, and effective protections for investors.”
Key aspects of Coinbase’s proposal
Coinbase’s recommendations focus on four core elements essential for a well-functioning digital asset market.
The exchange emphasizes the need for the SEC to establish a clear taxonomy distinguishing digital commodities from securities. According to Coinbase, digital assets that do not grant rights in a business enterprise should be classified as commodities, not securities.
Coinbase argued that differentiating between digital commodities and securities would allow traditional financial instruments to move on-chain. This shift could enhance global liquidity, streamline asset transfers, and lower operational costs by eliminating inefficiencies tied to outdated, paper-based market systems.
The exchange also urged the SEC to abandon its classification of secondary market sales of digital commodities as securities transactions. It argued that regardless of how a digital asset is initially issued, its secondary market transactions should not be treated as securities trades.
Beyond SEC-specific reforms, Coinbase also called on the agency to defer broader market framework development to Congress. It noted that while the agency plays a role in shaping regulations, lawmakers should be the ones to define regulatory boundaries and resolve existing uncertainties.
The exchange further called for regulations that support the growth of tokenized securities. It proposed targeted policy changes to align rules with blockchain’s economic realities, unlocking new opportunities in financial markets.
Shirzad concluded:
“Directly addressing these core points will provide clarity that will enable the SEC, other federal agencies, and Congress to efficiently address additional questions vital to our industry’s future in the US. Clear guidance will also rapidly accelerate the adoption of more onchain tools that bring traditional finance into the current age, with the US leading the way.”
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