Smart contracts It should not be regulated in the same way as central custodians currency base Administration.
lately blog postsCoinbase CEO Brian Armstrong has shared a “realistic plan” to regulate cryptocurrencies and restore confidence in the industry after the cryptocurrency exchange FTX cryptocurrency exchange collapse.
According to Armstrong, “regulation should be limited to central players only” in the cryptocurrency industry, where transparency is limited.
1/ I often get asked: “What does clear regulation actually look like for cryptocurrency?” So I outlined a realistic plan for this that organizes the central actors, while maintaining decentralized innovation. https://t.co/sYsNR7igVQ
for decentralized crypto products such as decentralized finance (DeFi), decentralized autonomous organizations (DAOs) and autonomous wallets, financial regulators should not play a role here, as “transparency is built in by default” into decentralized crypto products.
Specifically, self-maintaining wallets should be treated as “software companies” and decentralized protocols should be treated as the equivalent of “open source.”
He added that even if money is transferred via these platforms, they should not necessarily be regulated as a “financial services company” because these products never own customer funds.
8/ To get there, we must preserve the innovation potential of this technology. Regulation should focus on intermediaries (the central players in cryptocurrencies), as more transparency and disclosure is needed.
Coinbase CEO Addresses Stablecoins, Howey Tests Updates
decentralization stablecoins Coinbase’s CEO said it was a “good place to start” in an effort to regulate the industry.
Stablecoin issuers can be regulated under Standard Financial Services Regulations by registering as a government trust or OCC National Trust. This would require these companies to hold assets 1:1 with exposure only to high-quality assets such as government bonds.
Among other requirements, Armstrong called for stablecoin issuers to undergo annual audits, be compliant with cyber security (SOC) standards and have “the ability to be blacklisted to meet sanctions requirements.”
Having dominated stablecoins, he also highlighted the need for more clarity about which assets in the cryptocurrency market are commodities and which are securities.
“Perhaps the most complex point that needs to be cleared up is which crypto assets are commodities and which are securities,” Armstrong wrote. The CFTC and the SEC have been discussing this issue in the US for several years now, but unfortunately they haven’t. Provide some clarity to the market.”
The Coinbase CEO also called on Congress to step in and pass legislation to classify cryptocurrencies with a new version of Howey test.
“I’m optimistic we can make significant progress on the above by 2023 and pass crypto legislation,” books Brian. “Coinbase will work hard to make this happen.“
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