Sat. Aug 13th, 2022

Regulators around the world are struggling to regulate the cryptocurrency space, but efforts are only just beginning

Leading cryptocurrency exchange Coinbase revealed that it is currently committed to the establishment of a separate regulator by the US government to oversee crypto activity.

Over the years, traditional regulators have struggled to properly control activities in the crypto space. The reason for this is the difference between the crypto market and other traditional financial markets.

As a result , Coinbase yesterday presented its Digital Asset Policy Proposal, in which it is proposing US Congress legislation that would regulate digital asset marketplaces (MDAs). The cryptocurrency exchange recommends that the government set up a new regulator specifically for the cryptocurrency space.

The new regulator would be tasked with overseeing the activities of cryptocurrency exchanges and other market participants such as wallet providers, custodians, digital asset banks, etc. Coinbase complained that “ Laws designed in the 1930s to allow effective oversight of our financial system could not take this technological revolution into account. Parts of these laws have no place for the transformative potential that digital assets and crypto-innovations enable. "

The crypto exchange suggested that Congress set up a new regulator to oversee the unique and concurrent innovations in the crypto space. The regulatory authority would be tasked with introducing a registration process for crypto exchanges and other service providers.

However, Coinbase argues that platforms and services that don't offer custody to their customers, such as miners, stakers, and developers, need to be treated differently. Coinbase believes that a special self-regulatory organization (SRO) is needed to strengthen supervision of the market.

The United States, like many other countries in the world, has yet to put in place final regulations for the cryptocurrency space. Securities and Exchange Commission (SEC) chairman Gary Gensler has called on Congress on numerous occasions to increase the regulator's powers and resources so that it can step up its oversight of the cryptocurrency market.

It is still unclear whether more cryptocurrency companies will support Coinbase's drive to set up a new regulator for the cryptocurrency space. However, with a market value of over $ 2 trillion, regulation may be necessary.

The post Coinbase advertises new crypto regulator in the USA appeared first on BitcoinMag.de .

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.