Coinbase, Robinhood, and representatives from the United States commodities regulator are set to testify before Congress on June 6 to discuss a newly proposed crypto bill. The trio will be sharing their firm’s, or agency’s views on a proposed bill that could see certain crypto tokens classified as digital commodities, among other things.
Coinbase Chief Legal Office Paul Grewal stated that the “U.S. is falling behind” and is at risk of driving jobs, innovation, and investment overseas. He argues that a clear rulebook is needed in the US to achieve the full promise of crypto, and until rules and laws are developed that reflect the realities of this new economic system, the full potential of making the financial system faster, fairer, and more affordable cannot be realized. Grewal also showed support for the proposed crypto bill, which he said is “a strong step forward in providing overdue regulatory clarity.”
The Digital Asset Market Structure Discussion Draft was released on June 2 and is part of a push from Republican congressmen Patrick McHenry and Glenn Thompson to provide a “statutory framework for digital asset regulation intended to provide clarity, fill regulatory gaps, and foster innovation while providing adequate consumer protections.” Grewal described the draft as a “thoughtful effort” that represents “a major step forward” and called on “lawmakers from both sides of the aisle to work together and act as soon as possible.”
In his testimony summary, Grewal mentioned that “digital assets do not collectively fit into any single existing regulatory box: some are commodities, some are securities, some are neither, and some simply don’t map onto existing categories.” He emphasized that with more than 20 percent of Americans owning and using crypto, a regulatory framework is needed that will protect consumers and enable the critical uses of this new technology to continue and grow.
This development is in line with Coinbase’s long-running push for more precise regulatory guidelines for the crypto sector, and it comes just a day after rival crypto exchange Binance was slapped with 13 charges by the U.S. SEC.