Coinbase, a top crypto exchange based in the United States, has responded to the Financial Stability Board’s (FSB), regarding its proposal to international regulate crypto assets. The regulator will reveal more information about it in the coming months.
Faryar Shirzad (Coinbase chief policy officer) outlined several areas that should be addressed in any global regulatory framework.
Coinbase lists stablecoins among the foundations for a “new era in innovation in financial services.” But Shirzad points out that Coinbase is not happy with the FSB’s view on stablecoins.
We recommend that the FSB explicitly exclude from the scope of a stablecoin agreement validators, block builders, relays, pool operators and other blockchain technology infrastructure providers who have no involvement of any kind in a stablecoin arrangement, except to support the blockchain network on which a stablecoin may operate. They also need to ensure that stablecoins are supported.”
Coinbase also discusses the importance of decentralized finance (DeFi). It recommends that the FSB encourage innovation rather than try to stifle it.
“Governments and regulators supported the internet’s early development. They should encourage DeFi innovation at its base layer.” DeFi developers do not create or publish code. They don’t facilitate financial transactions for customers, nor do they hold assets. Therefore, it is inappropriate to regulate them as if developers were cryptoasset market intermediaries.