Coinbase wants Congress to create a special regulator to oversee the crypto market

• Coinbase wants a special regulator to oversee cryptocurrency markets.
• The biggest crypto exchange in the US proposed the idea in a regulatory framework released on Thursday.

Coinbase has suggested Congress create a special regulator just for cryptocurrency markets, according to a new proposal.

"To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility over digital asset markets should be assigned to a single federal regulator," Coinbase said in its "Digital Asset Policy Proposal: Safeguarding America's Financial Leadership" released Wednesday.

Coinbase - the cryptocurrency exchange that went public in August - said a single federal regulator should be in charge of oversight. That would mean jurisdiction would rest outside entities like the SEC or CFTC. In addition, the company wants Congress to create a self-regulatory organization in order to "strengthen the oversight regime."

The two would create rules dealing with a range of crypto topics such as digital asset trading, transfer, custody, clearing, settlement, money payment, staking, borrowing and lending, and related incidental services, the company said in its policy proposal.

"This two-tier regulatory structure will ensure efficient and streamlined regulation and oversight, and evolve elements of the existing frameworks to meet the requirements of our new technologically-driven financial system," Coinbase said.

The policy proposal comes as the government has struggled with how to approach a regulatory framework for cryptocurrencies. And some big investors have stayed away from the asset class as they await more clarity from the government.

"Regulatory certainty in the United States is urgently needed to maintain our leadership in responsible financial innovation," Michael Piwowar, executive director of the Milken Institute Center for Financial Markets and former Commissioner and acting chairman of the U.S. Securities and Exchange Commission, said in an email.