Coinbase files petition with SEC for Crypto Securities Regulation

Crypto exchange platform Coinbase has filed a petition with the SEC calling for clear regulation for the crypto-securities.

The petition contains a list of questions posed by Coinbase’s general counsel Paul Grewal for the SEC to consider as they create a regulatory framework that addresses classification, issuance, trading and custody.

The platform’s political officer, Faryar Shirzad, believes that not regulating the market is a huge missed opportunity. Shirzad states that the crypto innovators in the US have steered away from the 100 trillion crypto securities market due to a lack of workable regulation in the securities market.

The platform published a blog posts explaining their petition, the differences between traditional securities and crypto-securities, the fundamental problem with applying traditional securities laws to digital assets, and the need for a solution.

They also ask for clarity regarding the custody of securities, and the rules for how the assets are to be kept safe.

Faryar accepts not to include the profound benefits, such as real-time settlement, secure trading without costly intermediaries and transparent transaction records for digital assets in the securities market.

Regulating this industry would only lead to greater investor protection, and thus greater investment, the platform believes.

Coinbase also points out that the SEC has been reluctant to write new rules for crypto and has instead adopted an enforcement-first approach, which discourages the development of this emerging industry.

Coinbase points out that several countries around the world, including the EU, UK, Singapore and Japan are working to regulate this industry. Continued inaction by the SEC will only put the US crypto industry at a competitive disadvantage.

The platform asks the regulatory agency to start the procedure to form a set of comprehensive rules, by taking input from both public and key stakeholders.

They believe that an open and transparent process for the regulations should be followed. Coinbase is finally asking the SEC to “once again write the rules that will unlock the potential of US capital markets, this time driven by the benefits provided by crypto.”

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