Coinbase Petitions SEC to Start Rulemaking on Digital Asset Securities
Coinbase filed a petition asking the SEC to begin rulemaking on digital asset securities, according to a blog post published by the company.
Coinbase claims current securities rules do not work for tokenized debt and equity or crypto securities, and as a result, the United States is falling behind other industrialized nations in terms of digital asset innovation.
"Digital assets offer profound benefits – like real-time settlement, safe trading without costly intermediaries, and transparent transaction records," Coinbase Chief Policy Officer Faryar Shirzad wrote on Twitter. "These benefits won't come to pass if digital innovation is excluded from a market as big and impactful as the securities market."
And the SEC has not done enough to promote digital innovation.
"Unfortunately, the SEC has been unwilling to write new rules for crypto securities. Instead, it has relied on one-off enforcement actions," Shirzad continued. "This approach has stifled the crypto securities market and created enormous risk for investors."
With effective regulation, Coinbase claims buyers, sellers, exchanges, and the U.S. financial system can all win. But effective regulation starts with honest and transparent discussions about the web3 space.
Coinbase wants to work with the SEC and all other important web3 companies and policymakers to come up with a workable and agreeable solution.
Understanding the potential risks involved with cryptocurrencies, including NFT projects that use tokens as part of the gaming and business ecosystems, is a net positive for investors and collectors.