Human life is, by and large, a paradox. While we do preach progression across the board, we are also somewhat resistant to things that aren’t familiar to us. The history testifies for our natural tendency to refuse any major shift in dynamics. An identifiable reference here would be technology. The scale on which technology promised to function had almost everyone in doubt. Some even found their peace in claiming that the creation will fade away with time, but when it didn’t, the consensus began to change big time. Soon enough, we were investing our resources in constructing a tech-centric era. Now, the decision to do so turned out to be hugely positive, but it also created a fair amount of problems along the way. It must be noted that not everyone was convinced by this phenomenon yet, and hailing from the pack that took its time to become pro tech was the regulatory sector. By choosing to play the waiting game on technology, the regulators allowed the businesses to race ahead. This decision would set them up for a situation where they’ll have to do a lot at once. For starters, they’ll be scrambling to catch up with the companies they are supposed to govern. Once they get there, these regulators will have to deal with a whole another problem in the form of advanced tech by-products such as virtual currency. Supervising the activities within the isolated domains of technology and currency has proven to be challenging in its own right, hence having to look after an amalgamation of them complicated the picture even more so. Nevertheless, a once-and-for-all solution could finally be on the cards.
Coinbase, popular exchange platform, has put-forth a suggestion for U.S. to create an exclusive digital assets regulator. In its proposal, the company outlined a growing need for dedicated regulation of such assets, as any lapses on this front might leave the country trailing other nations for years to come.
Breaking down the proposal into 4 separate segments, Coinbase got the ball rolling by asking for a whole new framework to be used in the context of regulating digital assets. Up until now, the authorities have given digital assets like cryptocurrency the traditional treatment, which, in return, has triggered varying types of inconsistencies throughout its discipline. With the second suggestion, Coinbase raised a point of regulating digital assets through a new single federal authority. In all honesty, different regulatory bodies have struggled to understand their role in governing assets of the said nature, therefore having a dedicated authority should bring some order in the sphere. The company’s third point was essentially about protecting the owners of these assets in a better way by constructing stronger tools to fight against fraud and market manipulation. Packaged together with the same suggestion was a call to encourage disclosures from the companies for better transparency. Coinbase wrapped up its proposal by stating the importance of fair competition and interoperability between products.
“I think at the end what we thought, because our proposal is just a beginning of a conversation, that it made sense for us not to compromise on the core points of principle that we think people, which policymakers, should think about” says Faryar Shirzad, Chief Policy Officer at Coinbase.
