- Faryar Shirzad, chief policy officer of Coinbase filed a petition with the SEC.
- There are no securities rules for digital assets as the moment.
- Less risk for investors, more benefits for investors.
Coinbase has filed a petition asking the SEC to begin rule-making on digital asset securities. Faryar Shirzad, the chief policy officer of Coinbase released a blog about the crypto securities market. He stated that the crypto securities market needs to be unlocked soon.
He also declared that Coinbase’s petition for the SEC is written with the input of some of the best securities lawyers and economists in the country. The reason behind the petition is for SEC to develop a workable regulatory framework for digital asset securities guided by formal procedures and a public notice-and-comment process.
Containing high-risk investments such as digital assets, crypto companies, and decentralized financial products, the U.S Crypto market has always been robust and volatile. However, there is no meaningful crypto securities market in the United States.
According to the document, the main problem for the US crypto securities market is that securities laws are not suited to control digital assets such as tokenized debt and tokenized equity. While the SEC has refused to develop new rules for digital asset securities, several governments such as the EU, the UK, Singapore, Japan, Hong Kong, Australia, and other organizations around the world are working on their way to developing rules.
If the Coinbase petition is successful and SEC decides to make a groundbreaking decision for the US crypto securities market, there will be many opportunities. The crypto markets could be expanded to offer crypto securities such as real-time settlement, safe trading without costly intermediaries, and transparent transaction records.
Hence, one effective regulation can bring many benefits to buyers, sellers, exchanges, and even the U.S. financial system. But regrettably, SEC has been relying on one-off enforcement actions bringing risks for investors.
With a strong belief that effective regulation benefits everyone, Coinbase invites others to join to find a more effective solution for the SEC. Coinbase wants SEC to unleash the potential of the US capital market, fueled by Crypto.
