Coinbase is pushing Congress to pass legislation that provides regulatory clarity for the cryptocurrency industry, arguing that inaction leaves consumers vulnerable and drives innovation overseas.
In a two-page statement, Coinbase Chief Policy Officer Faryar Shirzad emphasized the urgent need for a framework that fosters responsible innovation while protecting investors.
Shirzad highlighted that blockchain technology and digital assets 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,” Shirzad wrote.
He warned that the United States risks losing its leadership in blockchain technology as companies seek friendlier regulatory environments abroad.
Key legislative priorities
Shirzad outlined several key priorities for legislation aimed at establishing a balanced regulatory framework for digital assets. First and foremost, there is a need for clear definitions that differentiate between securities, commodities, and other types of tokens. This clarity is essential for providing certainty to both investors and developers in the rapidly evolving digital landscape.
Additionally, there is strong support for granting the Commodity Futures Trading Commission oversight of the crypto spot market, particularly for major digital assets classified as commodities.
The Securities and Exchange Commission should also establish definitive guidelines that allow blockchain projects to raise capital without categorizing every token as a security. In terms of stablecoins, regulations should ensure transparency, full backing, and oversight that promote competition and innovation while preserving consumer confidence, Shirzad wrote.
Consumer protections and urgency in congressional action
According to Shirzad, effective legislation must be simple and accessible while integrating with existing financial regulations. He argued that lawmakers should 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 also stressed that consumer protection does not mean overregulation. Excessive restrictions could drive blockchain development offshore, weakening the U.S. economy and limiting consumer access to crypto markets. Instead, Shirzad calls for a framework that safeguards investors while allowing DeFi and other innovations to thrive.
Shirzad warned that without swift action, the United States will continue falling behind in the global blockchain race. Developers and businesses will look to other jurisdictions with clearer policies, 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.
