Coinbase Critiques U.S. Treasury's Cryptocurrency Mixing Rule: Regulatory Gaps and Solutions

As the U.S. Treasury's proposed rulemaking on cryptocurrency mixing comes under scrutiny, Coinbase has not shied away from expressing its concerns. The company has made it clear that it believes the proposed rules fall short in addressing regulatory gaps, while also placing an undue burden on crypto platforms. Here are some key points raised by Coinbase in response to the proposed rulemaking:

Criticisms of the Proposed Rulemaking:

• Fails to address regulatory gaps in the cryptocurrency space.
• Demands excessive amounts of data and resources from crypto platforms.
• The requirement to report all crypto mixing activities, regardless of legitimacy, is deemed inefficient by Coinbase.

Coinbase's Suggestions:

• Implementation of a monetary threshold for reporting crypto mixing activities.
• Focus on assisting exchanges in meeting their existing obligations, rather than enforcing mandatory bulk reporting rules.

By highlighting these issues and proposing alternative solutions, Coinbase aims to promote a more balanced and effective regulatory framework for cryptocurrency mixing activities.