According to news sources, crypto exchange Coinbase is pushing Congress to reform US crypto laws. In a blog post published on February 19, 2025, chief policy officer Faryar Shirzad laid out six priorities to provide clarity, protect consumers and keep blockchain innovation in the US. What is the market impact, and why are clear crypto regulations important for America’s leadership?
Coinbase Top Priorities for Reforming Crypto Laws
Define Digital Assets
Coinbase’s first priority is to define digital assets. The ambiguity surrounding whether cryptos are securities, commodities, or other types of property creates legal uncertainty. As Shirzad said,
“Policymakers, developers and the public don’t need to be crypto experts to understand these rules. The legislation should be easy to understand and not overly complex.”
Lawmakers can create a clear regulatory framework that enables innovation while protecting investors by defining digital assets.
Give Market Oversight
The second priority is to grant the ‘Commodity Futures Trading Commission (CFTC) authority over crypto spot markets. Coinbase says digital assets like BTC and ETH are commodities, not securities. Coinbase believes that giving the CFTC more oversight could increase market transparency and prevent fraud, making the market safer for consumers.
SEC Clarity for Fundraising
Blockchain projects struggle to raise funds under the current uncertain regulatory environment. Coinbase’s third priority is for the Securities and Exchange Commission (SEC) to provide clear guidelines for fundraising. With defined rules, blockchain developers could raise funds more easily and innovate without being bogged down by securities regulations. This would accelerate tech advancement and bring more venture capital to the US.
A Stablecoin Framework for Trust
Stablecoins bridge traditional finance and digital assets but lack of regulation puts consumers at risk. Coinbase’s fourth priority is to create a robust regulatory framework for stablecoins that are fully backed, transparent and competitive. A clear stablecoin framework would build trust, promote adoption and integrate stablecoins into the financial system.
Protect DeFi and Digital Commerce
DeFi and digital commerce have been the drivers of blockchain innovation. Coinbase’s fifth priority is to protect these areas from over regulation. By allowing smart contracts, DeFi platforms and NFTs to operate freely in a balanced regulatory environment, Congress would enable continued growth and innovation in these emerging areas without compromising consumer safety.
Uniform Oversight for Centralized Entities
The final priority is on centralized crypto entities – exchanges and custodians. Coinbase wants uniform regulations at state or federal level, striking a balance between consumer protection and business friendliness. Clear rules for centralized entities would prevent over regulation that would drive them overseas while maintaining high standards for security and transparency.
Deep Dive: We Need Crypto Regulation
Lack of crypto regulation is a major threat to US competitiveness. Ambiguity in the current legal framework is driving innovation abroad, with developers and investors seeking jurisdictions that offer more clarity and predictability. Without clear guidelines, American leadership in digital innovation will fade, investment will dry up, and consumer protection will suffer.
Crypto regulation can be a catalyst for institutional investment. Regulatory certainty will not only stabilize markets but attract long term capital, creating an environment where innovation thrives. As reports from Bloomberg and Reuters have noted, balanced regulation is critical to protect consumers and spur economic growth. In short, these six priorities from Coinbase can flip the regulatory map and make the US a global leader in digital assets.
Market Impact and Future Outlook
The stakes are high. The US digital asset market is allegedly $3 trillion and millions of American consumers are at risk due to regulatory uncertainty. Without swift legislation, the US will continue to see capital flight and brain drain of blockchain innovation. But if Congress adopts these six priorities they can create an environment that drives domestic growth, protects consumers and attracts institutional investment.
Industry leaders agree on the need for reform. Faryar Shirzad wrote on Feb 19 that without legislative clarity, US blockchain innovation will continue to flee overseas. Bloomberg and Reuters analysts have said clear crypto regulation is key to protecting consumers and creating an environment for innovation. The message is clear: we need legislation to stay competitive in the world of digital finance.
Conclusion
Coinbase’s call for crypto regulation outlines six essential priorities for the future of digital innovation in America. By defining digital assets, empowering the CFTC and SEC, creating stablecoin frameworks, and clarifying oversight for decentralized and centralized entities, these six can flip the regulatory map.
The clock is ticking. Without action, American innovation will continue to flee overseas, consumers will be exposed and the $3 trillion market will be stifled. But if Congress adopts these priorities, they can solidify the US’s position as a global leader in blockchain and crypto regulation.
Stay updated with Deythere as we’re available around the clock, providing you with updated information about the state of the crypto world.
FAQs
1. Why did Coinbase outline these 6 priorities?
Faryar Shirzad, Coinbase’s chief policy officer, says unclear crypto regulation is driving innovation abroad and leaving US consumers exposed.
2. Why are digital assets important to define?
Clear definitions help distinguish between securities, commodities and other token types reducing legal uncertainty and making regulations more predictable.
3. How would the CFTC help the market?
CFTC’s oversight of the crypto spot market would be more transparent and protect consumers from fraud and manipulation.
4. What would clear SEC guidance provide?
Clear rules for fundraising would simplify funding for blockchain projects and attract investment.
5. How would a stablecoin framework benefit consumers?
A robust framework would ensure stablecoins are fully backed and transparent, increasing consumer trust and integrating digital assets with traditional finance.
Glossary
Crypto Regulation: The rules that govern digital assets to ensure transparency and consumer protection.
Market Maker: Firm that provides liquidity by offering to buy and sell digital assets.
OTC: Over-the-counter trading of assets between two parties without a centralized exchange.
Stablecoin: Cryptocurrency pegged to a fiat currency to maintain a stable value.
CFTC: Commodity Futures Trading Commission regulates commodity markets.
SEC: The Securities and Exchange Commission regulates securities and protects investors.
DeFi: Decentralized Finance, blockchain-based financial services without intermediaries.
References
Legal Disclaimer
This post is for informational purposes only and is not financial, investment or ‘legal advice. Please do your own research and consult with a professional before making any decisions based on this post.
For advertising inquiries, please email . [email protected] or Telegram
