Crypto exchange platform Coinbase has filed a petition with the SEC asking for clear regulation for the crypto securities.
The petition features a list of questions asked by Coinbase’ Chief Legal Officer Paul Grewal for the SEC to consider while creating a regulatory framework, addressing classification, issuance, trading and custody.
The platform’s chief policy officer, Faryar Shirzad, believes that not regulating the market is a huge missed opportunity. Shirzad states the crypto innovators in the U.S have steered clear of the 100 trillion crypto securities market due to a lack of workable regulation in the securities market.
The platform published a blog post explaining their petition, the differences between traditional securities and crypto securities, the fundamental problem with applying traditional securities law to digital assets, and the need for a solution.
They also ask for clarity regarding the custody of securities, and the rules for how to keep assets safe.
Faryar condones not including the profound benefits, like real-time settlement, safe trading without costly intermediaries, and transparent transaction records of digital assets in the securities market.
Regulating this industry would only lead to greater investor protection, and thus greater investments, believes the platform.
Coinbase also points out that the SEC has been unwilling to write new rules for crypto and instead adopted an enforcement-first approach, which works against the development of this emerging industry.
Also Read: U.S. SEC Lists 9 Digital Crypto Tokens as Securities
Coinbase points out that several countries across the globe, including the European Union, United Kingdom, Singapore and Japan are working towards regulating this industry. Continued inaction by the SEC would only put the U.S. crypto industry at a competitive disadvantage.
The platform asks the regulatory agency to start the procedure of forming a set of comprehensive rules, by taking the input of both public and key stakeholders.
They believe that an open and transparent process for the rulemaking should be followed. Coinbase ultimately asks the SEC to ‘once again write the rules that will unleash the potential of U.S. capital markets, this time fueled by the benefits provided by crypto.
