Coinbase unveils legislative blueprint to shape crypto regulation under Trump administration

Traders Union
All News
Crypto News
Coinbase releases U.S. legislative wishlist

Shifting regulatory oversight to the CFTC

One of Coinbase’s most significant proposals is advocating for the Commodity Futures Trading Commission (CFTC) to oversee cryptocurrency spot trading. The exchange maintains that Bitcoin, Ethereum, and similar digital assets should be classified as commodities rather than securities—a stance at odds with the Securities and Exchange Commission (SEC), which has traditionally exerted regulatory control over the sector under Democratic leadership. If adopted, this shift could drastically alter how U.S. agencies regulate the nearly $3.3 trillion crypto market.

While some regulatory adjustments could be implemented directly by federal agencies, many of Coinbase’s proposed changes will require congressional approval. Coinbase, led by CEO Brian Armstrong, has been a vocal critic of the SEC under the Biden administration. The company recently expanded its political reach by bringing in former Senator Kyrsten Sinema and Chris LaCivita, co-campaign manager for President Trump, signaling a strong push to influence policy at the highest levels.

Coinbase’s advocacy for CFTC oversight aligns with a Republican-backed bill that previously passed in the House, despite opposition from some Democrats concerned about financial crime and consumer protections. Additionally, the exchange is pushing for explicit regulatory carve-outs for decentralized finance (DeFi), smart contracts, and digital commerce platforms. It is also calling for state or federal oversight of centralized exchanges to instill consumer confidence while ensuring minimal interference in decentralized systems.

Consumer protections and blockchain rights

Beyond shifting regulatory oversight, Coinbase is urging lawmakers to establish legal protections for blockchain developers and allow users to maintain full control over their digital assets through self-custody wallets. The exchange is also advocating for users’ rights to stake, operate network nodes, and engage in peer-to-peer transactions—what it describes as the “foundational rights” of the blockchain economy.

Furthermore, Coinbase argues that intermediaries, such as centralized exchanges, should be held to high standards of transparency, security, and accountability. The company’s guiding principles stress avoiding unnecessary regulatory complexity, minimizing disruption to existing financial frameworks, and fostering an innovation-friendly environment. Coinbase also calls for a light-touch approach to DeFi and related emerging technologies to ensure continued growth in the sector.

Previously, we reported that Coinbase posted Q4 revenue of $2.3 billion and net income of $579 million, bringing its full-year revenue to $6.6 billion.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.