Regulators worldwide are grappling with how to oversee the cryptocurrency sector, and meaningful efforts are still in their early stages
Leading cryptocurrency exchange Coinbase has announced it is actively lobbying the United States government to establish a dedicated regulatory agency to oversee activities within the cryptocurrency ecosystem.
Traditional financial regulators have long struggled to adapt to the unique dynamics of crypto markets. Cryptocurrencies and related technologies operate differently from conventional financial instruments and markets, creating challenges for oversight frameworks originally designed for earlier eras.
In response, Coinbase published its Digital Asset Policy Proposal, calling on the U.S. Congress to enact legislation that would define and regulate Marketplaces for Digital Assets (MDAs). The exchange urges the creation of a new regulator focused on digital assets and crypto innovation.
Under Coinbase’s proposal, the new regulator would supervise cryptocurrency exchanges and other market participants such as wallet providers, custodians, digital asset banks, and similar service providers. The company notes that “laws drafted in the 1930s to facilitate effective oversight of our financial system could not contemplate this technological revolution,” and argues that some elements of existing statutes are not well-suited to accommodate the transformational potential of digital assets.
Coinbase says Congress should establish an agency tailored to the concurrent, distinctive innovations occurring in the crypto space. That regulator would manage registration and oversight processes for crypto exchanges and related service providers, ensuring clearer rules and standards for market participants.
At the same time, Coinbase emphasizes that certain participants—platforms and services that do not custody customer assets, including miners, stakers, and developers—should be treated differently from custodial providers. To strengthen market oversight further, the company proposes creating a dedicated self-regulatory organization (SRO) to complement government regulation and set industry standards.
The United States, like many other jurisdictions, has not yet put in place comprehensive, definitive rules for the cryptocurrency industry. U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has repeatedly urged Congress to grant the agency greater authority and resources to enhance its supervision of crypto markets.
It remains uncertain whether other cryptocurrency firms will back Coinbase’s push to establish a new federal regulator. With the digital asset market now valued at more than $2 trillion, however, many observers argue that clearer regulatory frameworks may be necessary to protect investors, foster innovation, and ensure market integrity.