1/ We have long been calling for a workable crypto securities framework. Today, @coinbase is formalizing those calls in a petition to @SECGov, requesting rules that work for digital asset securities. 🧵blog.coinbase.com/the-crypto-securities-market-is-waiting-to-be-unlocked-but-first-we-need-workable-r...

2/ The U.S. crypto market, which is overwhelmingly made up of commodities, is robust. Yet despite billions of dollars invested in crypto innovation, and 13+ years since the invention of Bitcoin, there is still no meaningful crypto securities market in the U.S.

3/ That’s because securities rules simply don’t work for tokenized debt.

They don’t work for tokenized equity.

And they don’t work for crypto securities.

That’s a major problem for American innovation and competition.

4/ As a result, the U.S. is falling behind in digital asset innovation. Other regulators around the world, including in the EU, UK, Singapore, Japan, Hong Kong, and Australia, are well on their way to cohesive workable crypto rules.

5/ Digital assets offer profound benefits – like real-time settlement, safe trading without costly intermediaries, and transparent transaction records. These benefits won't come to pass if digital innovation is excluded from a market as big and impactful as the securities market.

6/ Unfortunately, @SECGov has been unwilling to write new rules for crypto securities. Instead, it has relied on one-off enforcement actions. This approach has stifled the crypto securities market and created enormous risk for investors.

7/ Effective regulation benefits everyone — buyers, sellers, exchanges, and the U.S. financial system. Our petition lays out a potential path forward, so the SEC doesn't have to start from scratch.

8/ We invite others to join us in finding a workable solution. We may not agree every step of the way, but it’s critical that this is an open and transparent process where the public can weigh in. Policymaking at this level is far too important to be made in a black box.