Coinbase Urges Congress to Pass Cryptocurrency Legislation

Coinbase is advocating for Congress to pass legislation that provides regulatory clarity for the cryptocurrency industry. In a statement, Coinbase Chief Policy Officer Faryar Shirzad emphasized the need for a framework that fosters responsible innovation while protecting investors.

Shirzad highlighted the potential of blockchain technology and digital assets to offer economic opportunities, financial inclusion, and innovation. However, without clear rules, developers face uncertainty, and consumers lack proper protection.

“Blockchain and digital assets aren’t just technological advancements; they open doors to financial freedom, innovation, and economic empowerment.”

Key Legislative Priorities

Shirzad outlined several key priorities for legislation aimed at establishing a balanced regulatory framework for digital assets. These include:

  • Clear definitions that differentiate between securities, commodities, and other types of tokens.
  • Granting the Commodity Futures Trading Commission oversight of the crypto spot market, particularly for major digital assets classified as commodities.
  • Establishing definitive guidelines that allow blockchain projects to raise capital without categorizing every token as a security.
  • Ensuring transparency, full backing, and oversight of stablecoins to promote competition and innovation while preserving consumer confidence.

Consumer Protections and Urgency in Congressional Action

Shirzad argued that effective legislation must be simple and accessible while integrating with existing financial regulations. He emphasized the need for lawmakers to encourage innovation by providing clear pathways for developers to build decentralized systems without unnecessary restrictions.

At the same time, centralized exchanges and custodians must be held to high transparency and security standards to protect consumers. Shirzad stressed that consumer protection does not mean overregulation, which could drive blockchain development offshore and weaken the U.S. economy.

Instead, Shirzad calls for a framework that safeguards investors while allowing DeFi and other innovations to thrive. He warned that without swift action, the United States will continue falling behind in the global blockchain race, and consumers will remain exposed to fraud and systemic failures.

Passing comprehensive cryptocurrency legislation, Shirzad argued, will protect consumers, encourage responsible innovation, and position the United States as a leader in the digital economy.

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