Coinbase Unveils 36 Recommendations to Reshape Crypto Regulation—Will the SEC Follow?
Crypto exchange Coinbase (Nasdaq: COIN) has laid out a blueprint for digital asset regulation, stressing the importance of collaboration with the U.S. Securities and Exchange Commission (SEC). The company submitted its response to SEC Commissioner Hester Peirce’s request for information, calling on industry participants to engage in shaping the regulatory framework. Peirce heads the SEC’s new crypto task force.
Coinbase’s chief policy officer, Faryar Shirzad, described recent progress in the U.S. crypto landscape, stating:
It’s a new day for crypto in America.
He pointed to key developments, including White House engagement with crypto leaders, congressional efforts toward stablecoin regulation, and the SEC’s launch of a crypto Task Force. The company acknowledged the SEC’s increased willingness to engage with the industry after more than two years since Coinbase’s initial petition for rulemaking. “Coinbase has already had fruitful discussions – as have other industry participants – with the Task Force and agency staff and we look forward to a continued dialogue to address longstanding questions about what role the SEC should play in regulating digital markets,” Coinbase stated.
The crypto exchange’s response included numerous recommendations aimed at resolving regulatory uncertainty and tailoring existing securities laws to digital assets. The company detailed:
Our response offers 36 recommendations for the SEC that outline a path forward for digital asset regulation and considerations for an approach to reframing specific parts of existing securities regulation so that it is appropriately tailored for digital assets.
Among the key proposals, Coinbase urged the SEC to establish a clear taxonomy distinguishing digital commodities from securities, emphasizing that assets without rights in a business enterprise should be classified as commodities. The company also called for confirmation that secondary market sales of digital commodities should not be considered securities transactions and urged the SEC to defer to Congress in developing a broader market structure framework. Additionally, Coinbase stressed the importance of supporting tokenized securities through regulatory relief that acknowledges blockchain’s economic potential and fosters innovation in digital investment products.
Coinbase underscored the need for regulatory clarity to accelerate blockchain adoption and solidify the U.S. as a leader in digital innovation. The company expressed gratitude for the opportunity to contribute to Commissioner Peirce’s initiative and emphasized that continued collaboration between the SEC, Congress, and industry stakeholders is essential. Furthermore, Coinbase highlighted the role of grassroots advocacy in making crypto a mainstream issue and encouraged ongoing industry participation in regulatory discussions. The company reaffirmed its long-term vision for digital assets, stating:
Crypto is here to stay. Together, we can modernize the financial system, create a system that creates more opportunities for participation by the public, and secure America’s future as the world leader in digital innovation.