Coinbase sends letter to U.S. Consumer Financial Protection Bureau: Cryptoassets should not be included in proposed regulatory rules for payment apps

Coinbase Chief Legal Officer Paul Grewal sent a letter to the U.S. Consumer Financial Protection Bureau (CFPB) on Monday commenting on the CFPB’s proposal to define and regulate universal digital consumer payment applications. Coinbase said its core concern is that the CFPB’s proposed rules would bring crypto assets into its jurisdiction without extensive research or understanding of crypto transactions and without proving the authenticity of crypto assets. The material issues doctrine prohibits the agency from exercising jurisdiction over the digital asset industry without explicit authorization from the U.S. Congress. Rather than overstepping their authority before Congress, federal agencies including the CFPB should amend their rules to exclude cryptocurrencies and let Congress fulfill its duty to establish a clear regulatory framework to protect consumers.