Coinbase Intensifies Push for Clear Crypto Legislation; See Latest Actions

Coinbase Intensifies Push for Clear Crypto Legislation; See Latest Actions

Leading U.S. cryptocurrency exchange Coinbase is amplifying its advocacy efforts to push for explicit legislation for the world of cryptocurrency.

This campaign includes a holistic paid media initiative featuring advertisements in Washington, DC, and calls to action on its platform. The goal? To galvanize crypto users to reach out to their Congressional representatives to support cryptocurrency legislation.

The drive is a response to a bill advanced by a Congressional committee in July, aiming to clarify when a cryptocurrency is deemed a security or a commodity. The crypto industry is anxiously awaiting this bill to reach the voting stage in the U.S. House of Representatives.

Bringing Crypto to Capitol Hill

As part of its advocacy efforts, Coinbase is orchestrating a “fly-in” on September 27. The company plans to bring executives and developers from around 35 crypto companies to converse with staff and lawmakers on Capitol Hill. Coinbase hopes this direct engagement will stress the broader significance of cryptocurrency beyond its own operations.

Coinbase is a key player in industry advocacy, having spent $3.39 million on lobbying in the 2022 election cycle – the highest of any crypto company according to data from OpenSecrets. The company also recently initiated a non-profit, Stand With Crypto, which seeks to promote pro-crypto policies.

SEC vs Crypto: The Battle for Clarity

This advocacy push comes amid the crypto industry’s resistance against the U.S. Securities and Exchange Commission (SEC), which has been adopting a stricter approach towards the industry. Currently, the SEC is suing Coinbase for allegedly selling unregistered securities, a claim the company vehemently denies.

Coinbase estimates there are 52 million crypto owners in the U.S, which indicates the potential political influence of this group. CEO Brian Armstrong has publicly voiced his concerns regarding the necessity for transparent cryptocurrency regulations, emphasizing that the U.S. cannot afford to fall behind in adopting this game-changing technology.

The Need for Regulatory Engagement

Armstrong maintains that it is essential for regulators to establish clear guidelines before enforcing them and suggests that it might be necessary for Congress to step in. Armstrong’s frustration at the lack of guidance from the SEC is not new. Despite having 30 meetings with the regulatory body over the past year, the lack of feedback on Coinbase’s practices has been a source of contention.

Armstrong has criticized the SEC for neglecting its duty to provide clear market standards, suggesting that legal action might be the only way to obtain the necessary clarity. He accused the regulatory body of shirking its responsibility to create a secure and thriving market environment.

While Coinbase would prefer to avoid litigation, Armstrong stated that they are well-prepared to pursue legal action for the clarity they seek. He expressed confidence in the legal standing of Coinbase and believes that a jury would not find the SEC’s actions favorable.

Expanding Beyond U.S. Borders

While the tussle with the SEC continues, Coinbase is looking beyond the United States to focus its operations in countries with clearer crypto laws. The European Union, United Kingdom, Canada, Brazil, Singapore, and Australia have been marked as “near-term priority markets” due to their clear rules and burgeoning crypto-friendly environments. Coinbase plans to focus on acquiring licenses, registering, and establishing robust operations in these countries.

The Future of Crypto Advocacy

With the increase in crypto owners and the escalating need for clear legislation, the advocacy efforts of companies like Coinbase will likely continue to intensify. The outcome of the SEC lawsuit against Coinbase may have far-reaching implications for the crypto industry. As the crypto world watches this lawsuit unfold, the demand for clear, fair, and equitable regulations in the industry will undoubtedly persist.