Coinbase CEO to Meet House Democrats, Discuss Crypto: Report
The CEO of crypto exchange Coinbase, Brian Armstrong, will meet Democrats from the House of Representatives in Congress this Wednesday behind closed doors.
As reported by Bloomberg, the agenda for this private meeting is to discuss “digital-asset legislation and related issues including tax, national security, privacy and climate.”
In the meeting will be members of New Democrat Coalition, a political faction of over 100 Democrats that are “committed to pro-economic growth, pro-innovation, and fiscally responsible policies.”
Decrypt has reached out to Coinbase for comment and will update this article should we receive a response.
Coinbase and U.S. regulators
This news comes amid Coinbase’s legal battle with the SEC over accusations of operating an unregistered securities exchange, and for selling unregistered securities through its staking service.
The SEC has launched a regulatory crackdown on crypto firms, with software company Ripple Labs also facing accusations of selling its XRP token as an unregistered security.
“The regulatory gap.” Proof from the Hinman emails of what we’ve been saying to the Third Circuit, to Congress and to the SEC itself: that the securities laws are incomplete when it comes digital assets, that securities law aren’t meant to rule over all digital assets, and that… pic.twitter.com/IgPJvEyqq2
— paulgrewal.eth (@iampaulgrewal) June 13, 2023
Crypto firms have argued that unclear regulations have been a motif in both cases. They have pointed to a speech made by the SEC director William Hinman, in which he explains that Ethereum should not be considered a security—despite this not being an official SEC ruling. Both Ripple and Coinbase claim that this speech has caused confusion around the question of whether cryptocurrencies constitute securities.
In a recent court ruling, Federal district judge Analisa Torres found that programmatic sales of Ripple’s XRP token to public buyers were “not necessarily a security on its face.”
While news of Ripple’s court victory sparked a rally in Coinbase stock and renewed optimism among Coinbase’s legal team, analysts at Berenberg Capital have cautioned that Coinbase is “”far from being in the clear” following Ripple’s partial win.
Meanwhile, Coinbase’s CEO continues to push for greater regulatory clarity. As part of a Twitter thread, back in March, Armstrong mentioned that he is “excited to work with all governments and regulators around the world who are focused on putting in place clear rules to regulate the crypto industry.”
Since then, Armstrong has met with UK Economic Secretary and City Minister, Andrew Griffith—and is now taking his campaign to Capitol Hill.