Major US crypto exchange Coinbase is planning to submit a proposal on policies and regulations on cryptocurrencies to US federal officials.
Coinbase will publicly reveal its proposal in the coming days, according to people familiar with the matter.
Details of the proposal haven’t been revealed yet, but the company will likely offer definitions of what should be considered securities in the United States and what should not, Coindesk reported on the 22nd.
Coinbase recently announced that it will discontinue its plans to offer its ‘Lend’ product where stablecoin holders could receive interest on their holdings for lending their coins. The news came after the company revealed it received a Wells Notice from the US SEC.
The exchange said that the SEC threatened to sue the company if it moved forward with the launch of its new product.
CoinDesk has not released details of the Wells Notice but said that the SEC quoted two U.S. Supreme Court old cases, the Howey and Reves cases, in saying that the Lend product would violate the securities law.
Coinbase has been increasingly active in offering frameworks for the standardization of crypto listings and products to crypto exchanges.
In 2019, the exchange became the founding member of the Crypto Rating Council (CRC) that aims to establish a unified understanding of the differences between crypto-assets and securities.