Coinbase CEO to Meet House Democrats – This Wednesday, Brian Armstrong, the CEO of Coinbase, a cryptocurrency exchange, will have a closed-door meeting with Democrats from the House of Representatives in Congress. 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.” Amidst Coinbase’s ongoing legal dispute with the SEC, which involves allegations of operating an unregistered securities exchange and selling unregistered securities through its staking service, news has emerged about the CEO’s scheduled meeting with House Democrats.
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This regulatory crackdown by the SEC on cryptocurrency companies includes Ripple Labs, a software company accused of selling its XRP token as an unregistered security. Both Ripple and Coinbase, two prominent cryptocurrency firms, have highlighted the presence of ambiguous regulations as a recurring theme in their respective cases.
They specifically refer to a speech delivered by SEC director William Hinman, where he expressed that Ethereum should not be classified as a security, although it was not an official SEC ruling. Both companies argue that this speech has led to uncertainty regarding the classification of cryptocurrencies as securities, contributing to the overall confusion surrounding the matter.
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.
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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.” Following his meeting with UK Economic Secretary and City Minister, Andrew Griffith, Brian Armstrong is now extending his advocacy efforts to Capitol Hill.