Coinbase CEO Brian Armstrong is taking part in a closed-door meeting with House Democrats to actively deliberate on crypto regulation according to a Bloomberg report. Organized by the New Democrat Coalition, this meeting will focus on various aspects of crypto legislation, including taxes, national security, privacy, and climate. According to Democratic aides familiar with the plans, the meeting is scheduled for Wednesday, 19th of July.
The New Democrat Coalition, comprising 100 center-left members, aims to foster collaboration on multiple issues and promote innovative and inclusive policies. As a part of their agenda, they have invited Armstrong to discuss the much-needed regulations within the cryptocurrency industry.
Coinbase’s Persistent Efforts for Regulatory Clarity
Coinbase has been actively advocating for clearer regulations in the cryptocurrency realm. In July of the previous year, Coinbase filed a petition with the SEC, urging the agency to provide regulations that clarify how securities laws are applicable to cryptocurrencies.
Additionally, they requested engagement in a formal notice-and-comment process to enable public input. In March, the largest US-based crypto exchange also submitted a comment to the agency, seeking further clarity on the SEC’s stance regarding staking services.
In April, Coinbase took legal action by filing a lawsuit with a federal appellate court in Philadelphia. The lawsuit alleged that the SEC neglected Coinbase’s rulemaking petition while aiming to initiate enforcement actions against the exchange for listing unregistered securities.
SEC Accusations and Coinbase’s Defense
Coinbase currently faces a lawsuit filed by the US SEC. They accused the platform of violating regulations that mandate registration as a securities exchange. However, Coinbase has vehemently denied these allegations and is actively seeking the dismissal of the SEC lawsuit. The exchange argues that the SEC has failed to provide clear guidelines for registration as a compliant trading platform.
In a recent filing, the SEC claimed that Coinbase was aware of a potential securities breach when listing certain cryptocurrencies. The SEC lawyers criticized Coinbase’s assertion that it was unaware of violating securities laws. They highlighted the fact that the exchange, as a multi-billion-dollar entity, had access to sophisticated legal counsel.
They further emphasized that Coinbase’s registration statement approval by the SEC in 2021 did not signify the agency’s confirmation of the legality of the exchange’s business activities at all times. These developments have intensified the legal battle between Coinbase and the SEC.
Positive Developments Propel Coinbase’s Shares
Despite the ongoing legal challenges, Coinbase’s shares have experienced a rally over the past few days, thanks to a series of positive news. Firstly, the exchange was listed as a surveillance-sharing partner for several spot Bitcoin ETF applicants in the United States. These include industry giants like BlackRock and Fidelity.
Moreover, the crypto industry celebrated a victory against the SEC when a US court ruled in favor of Ripple in the ongoing XRP lawsuit. The court stated that selling XRP on exchanges does not inherently constitute an investment contract. These favorable outcomes have contributed to the positive sentiment surrounding Coinbase.