Coinbase CEO to Meet House Democrats For First Time After SEC Lawsuit
On Wednesday, July 19, Coinbase CEO Brian Armstrong will be meeting House Democrats behind closed doors, said sources familiar with the matter. This is the first time that Armstrong will be meeting lawmakers ever since the US SEC slapped a lawsuit on the crypto exchange last month.
As per reports, Armstrong will have a private conversation with lawmakers from the New Democrat Coalition about cryptocurrency legislation and other related issues of national security, privacy, climate, and taxation.
Armstrong has been actively advocating for clearer regulations on digital assets in Washington. Coinbase, being a US-based company, has been pushing lawmakers to consider two bills that are currently circulating. These bills aim to provide better guidance on how crypto exchanges can register with regulatory authorities.
The New Democrat Coalition is a group of 100 center-left members who strive to collaborate across party lines on various matters. Their goal, as stated on their website, is to promote innovative, inclusive, and progressive policies.
Coinbase vs SEC
Last month, the U.S. Securities and Exchange Commission (SEC) slapped a lawsuit on crypto exchange Coinbase for alleged violations of securities laws. The federal securities regulator also said that Coinbase defied rules to register as a securities exchange. The lawsuit comes as a wider crackdown by the SEC on the entire crypto industry.
However, Coinbase has denied the claims and plans to vigilantly defend its position. Additionally, apart from the US SEC, Coinbase is also fighting a legal battle with the CFTC. Armstrong has highlighted the contradictory statements made by the SEC and the Commodity Futures Trading Commission (CFTC), two separate regulatory bodies in the US, regarding their jurisdiction over certain aspects of the industry. He believes that this situation needs to be addressed. Thus, the US Congress is working on introducing new legislation to resolve the issue.
Despite the regulatory developments, the Coinbase stock price registered a strong rally over the last month. The COIN stock price has shot up by 142% over the last five weeks. However, the recent rally has given an exit opportunity for Ark Invest.