Crypto Regulation: Coinbase Policy Chief Foresees US Catching Up

• Crypto Regulation Milestone: Coinbase’s Chief Policy Officer, Farar Shirzad, discusses SEC approvals of spot Bitcoin ETFs.
• Impact on Relationship: Legal intervention leads to SEC approving ETFs, signaling a new chapter in regulatory-crypto relations.
• Global Recognition and Shift: SEC’s approval endorses a vital crypto product, attracting new investors and marking symbolic significance.
• US Catching Up: While the US lags in adopting crypto frameworks, Shirzad expresses optimism about catching up globally.

In a significant development on the crypto front, the SEC recently approved a series of spot Bitcoin ETFs, with Coinbase serving as the custodian for many of these ETFs. Farar Shirzad, the Chief Policy Officer at Coinbase, shared insights on this regulatory milestone and its implications during an interview at Davos. 

So, as the crypto industry evolves, Shirzad sheds light on the challenges and opportunities facing the United States in the global crypto economy.

SEC Approvals: A New Chapter for Crypto

Amidst occasional friction between the SEC and the crypto industry, Shirzad diplomatically acknowledges the recent approvals of spot Bitcoin ETFs. So, he emphasizes that legal intervention forced the SEC’s hand, stating. “The courts had to intervene and they pretty definitively said that the basis of having turned down Grayscale’s application was arbitrary, capricious, and an abuse of power.” 

So, this sets the stage for a new chapter in the relationship between the regulatory body and the crypto industry.

Impact on Investors and Symbolic Significance

The approval of these ETFs brings a fresh wave of investors into the crypto economy and holds symbolic importance. So, Shirzad notes that it marks the SEC’s explicit endorsement of a vital crypto product. 

So, he states, “It puts the SEC on record as blessing an important crypto product.” Indicating a significant shift in the regulatory landscape.

Global Perspectives on Crypto and US Lagging Behind

Addressing the global perspective on crypto, Shirzad highlights that while the US  faces uncertainties. The rest of the G20 nations have been proactive in adopting crypto frameworks. So, he points out that the US’s prolonged debate on regulations made it less relevant in these global discussions. 

However, with a note of optimism, he expresses hope that the US will catch up. Recognizing the potential for leadership in the evolving internet era.

Institutionalization and Mainstream Integration

Reflecting on the evolution of crypto, Shirzad observes a shift towards greater institutionalization and mainstream acceptance. So, he notes the increasing involvement of mainstream companies, both financial and non-financial, in the crypto space. 

So, the mysterious aura surrounding crypto is dissipating. Replaced by a more settled understanding of its technology and potential. The focus now lies on integrating crypto into traditional financial systems.

US Crypto Industry: Bipartisan Support and Regulatory Clarity

Image from Metaversepost 

Responding to the perception that the US lags in the crypto industry, Shirzad highlights the large crypto market within the country.  Boasting 52 million American crypto owners. 

So, he emphasizes the bipartisan support in Congress for constructive crypto legislation. With expectations of significant progress in the coming months. This, however, underlines the importance of providing regulatory clarity to sustain and boost the crypto market within the US.

Crypto as Money: Public Adoption and Technological Advances

Shirzad addresses the ongoing debate regarding whether crypto should be considered as money. So, he points out the global trend of millions adopting crypto as a means of moving value electronically. Governments are now exploring this avenue, aligning with the growing public interest. 

So, despite challenges in frictionless payments. Technological advancements, such as Coinbase’s launch of the proprietary protocol called Base. Are paving the way for enhanced speed, scalability, and security in crypto transactions.

Future Focus: Policy Initiatives and Global Engagements

Looking ahead, Shirzad outlines Coinbase’s multifaceted policy focus. The primary area of attention is the US, where legislative initiatives will consume significant energy. 

Simultaneously, Coinbase is actively engaged in jurisdictions worldwide where rule-making discussions are underway. These include the European Union, the UK, Australia, Singapore, South Korea, and Brazil. So, the commitment to participating in global debates shows Coinbase’s dedication to influencing crypto regulations on a global scale.

Conclusion

The recent SEC approvals show a pivotal moment in the crypto industry, bringing both challenges and opportunities. So, as Coinbase’s Chief Policy Officer, Farar Shirzad, navigates the regulatory landscape. He sees a future where the US catches up with its global counterparts in embracing and regulating the crypto economy. 

So, with technology advancing and public interest growing, the journey toward mainstream acceptance appears to be accelerating.

Bankrate; Image source 

The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.