Cryptocurrency exchange Coinbase is asking Congress to isolate the US Securities and Exchange Commission (SEC) from regulating the cryptocurrency market, The Wall Street Journal (WSJ) has learned, citing a policy blueprint. The exchange is said to publicly release a document with regulatory proposals soon.
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According to the exchange, the market is suffering over uncertainty regarding which federal regulators should oversee particular cryptocurrencies. The Delaware-based cryptocurrency exchange says the market should have one regulator.
"Laws drafted in the 1930s to facilitate effective oversight of our financial markets could not contemplate this technological revolution. Congress should recognize in law that all digital assets, including digitally native versions of traditional financial assets, should be subject to a new regulatory regime," the paper says.
Coinbase's pitch comes after reports revealed that the White House is considering to put more oversight over the 2 trillion cryptocurrency market. The new approach is expected to help in fight against the growing threat of ransomware and other cyber crime, involving cryptocurrencies.
Particularly, the Biden administration wants federal agencies to study and offer recommendations on crypto-related sectors, including financial regulation, economic innovation and national security. The initiative is also aimed to tie regulatory agencies' work on the cryptocurrency market throughout the executive branch.
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