After a lengthy legal battle, Coinbase has submitted a proposal to the US Securities and Exchange Commission (SEC) for clearer digital asset regulations.

The blueprint, presented by Coinbase Chief Legal Officer Paul Grewal, aims to help the SEC navigate the complex issue of regulating digital securities. The exchange's suggestions come ahead of the SEC's Crypto Task Force roundtables, which will address regulatory issues surrounding cryptocurrencies.

Coinbase's proposal includes four key points: first, the SEC should establish a clear distinction between cryptocurrency commodities and securities. Second, it urges the SEC to confirm that secondary market sales of commodities are not considered securities transactions.

Third, Coinbase recommends that the SEC consult with Congress on ambiguous regulatory areas instead of creating ad-hoc rules. Finally, the blueprint advocates for rules that recognise the potential of Web 3 and tokenized securities, hoping to solidify the US's leadership in this space.

The SEC has begun to shift its approach toward the cryptocurrency industry following the exit of former Chairman Gary Gensler. The agency, under the guidance of Commissioner Hester Pierce and the new Crypto Task Force, is working towards greater clarity for the industry.

Coinbase has expressed a willingness to collaborate with the SEC but has also filed a FOIA request for more transparency regarding its enforcement actions.