Coinbase published a proposal for an operational framework of the digital asset policy, and there are some interesting ideas in it. Brain Armstrong. Co-Founder and CEO of Coinbase tweeted about this proposal that is called Digital Asset Policy Proposal (dApp).
The company believes the framework can help government and regulators find easier settings for regulating the digital asset industry. The proposal is designed to especially help the US government, where Coinbase is mainly operating, to be stronger in the new economy. Armstrong tweeted about the proposal:
Today we're launching our Digital Asset Policy Proposal (dApp) which we hope will help chart a course for clear regulation of cryptocurrency and web 3.0 in the US. It's critical to bring clarity to this space and ensure America remains a financial leader. https://t.co/LYEMpmS99T
— Brian Armstrong (@brian_armstrong) October 14, 2021
“Today we’re launching our Digital Asset Policy Proposal (dApp), which we hope will help chart a course for clear regulation of cryptocurrency and web 3.0 in the US. It’s critical to bring clarity to this space and ensure America remains a financial leader.”
The dApp proposal is published on GitHub with details about how to design frameworks for regulating the digital asset market. One of the main topics talks about regulating digital assets under a separate framework.
The proposal says the regulations should consider digital assets as a financial asset that mainly works on the blockchain or distributed ledgers. It continues by offering that even old digital versions of fiat currencies should operate inside this new framework.
Other topics of Coinbase dApp talk about how to designate one regulator for digital asset markets and the goals of the framework. The proposal suggests that only one authority should check the concept and operation of marketplaces for digital assets (MDAs). It should also have appropriate disclosure for informing the purchase of digital assets.
An important thing about the latest proposal from Coinbase is that Armstrong and his team didn’t write it only focusing on their platform. He says that the proposal is the result of more than 75 meetings with stakeholders in various sectors. Government, industry, and academic sector entities have participated in the development of Coinbase dApp.
The goals of the new framework that Coinbase dApp suggests are interesting. It talks about three goals for the new framework that are designed around transparency, protecting users, and strengthening market resiliency. One important part of transparency goal says:
“The information environment for digital assets should focus on the material characteristics, benefits, and risks of the asset itself. An asset-centric approach would include information about the features of underlying projects that investors are likely to find most relevant in their purchase or use decisions.”
The new proposal from Coinbase is important because it comes from an industry leader and can help regulatory organizations become more familiar with it and help companies as well as users to work more efficiently. But it still has a long way to become an official regulation framework.