Foresight News reported that, according to The Block, Coinbase has submitted several recommendations to the U.S. Securities and Exchange Commission (SEC), calling for clarification of its regulatory authority over the cryptocurrency asset market. In a document released on Thursday, Coinbase outlined the steps the SEC could take, including no-action relief, guidance, or interpretation. Previously, SEC Commissioner Hester Peirce established a cryptocurrency working group in February and sought industry input on approaches to crypto regulation.

Coinbase's four main recommendations to the SEC include: clarifying that "digital assets that do not convey any equity interest in an enterprise" should be treated as "digital commodities" rather than securities, which Coinbase defines as "fungible digital assets that are not tied to any enterprise and whose value is primarily determined by their intrinsic utility or by market supply and speculation alone," covering assets such as network tokens, Non-Fungible Tokens (NFTs), and memecoins. "Digital securities," on the other hand, would be tokenized versions of traditional securities like debt and equity. Coinbase also called for the SEC to acknowledge that Congress should define "the appropriate regulatory treatment of digital assets in cases of ambiguity," and that stablecoins should be excluded from the SEC's jurisdiction during the legislative process. Coinbase's other two main recommendations include asking the SEC to clarify that "secondary market trading of digital commodities is not securities trading" and to focus on allowing stakeholders to tokenize traditional securities like debt.