According to CEO Brian Armstrong, the Nasdaq-listed crypto exchange Coinbase plans to propose cryptocurrency regulation by meeting with members of Congress. In addition, the company has met with more than 30 crypto firms, four major law firms and three trade groups about its crypto offerings.
Coinbase meeting with members of Congress and crypto firms on the regulatory framework for crypto
Coinbase is on a mission to influence crypto control on Twitter: U.S. CEO Brian Armstrong:
We have now met with 30+ crypto companies, 25+ members and / or staff of Congress, 4 major law firms and 3 trade groups on our regulatory proposals for crypto. Our policy team is working great and we are trying to be part of the solution.
Armstrong first revealed that his company was preparing a draft regulatory framework for submission to lawmakers in an interview on 22 September at Techcrunch Disrupt 2021.
The CEO revealed that he was asked more than once to propose a crypto regulatory framework because regulators often sought industry opinion when creating new rules.
He shared during the interview: “When I go to DC, I meet a lot of people in the government, and they usually ask us, ‘Well, do you have a draft, do you have any proposals that we can try? To shop about why it can be federally regulated?
Armstrong noted that Coinbase is currently licensed as a money transmitter and issuer in 50 states. He added that Coinbase operates under the Financial Crime Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), the Treasury and the Office. Foreign Asset Control (OFAC).
The Coinbase boss has indicated that he prefers a federal structure rather than dealing with independent state-by-state rules and agencies. He was quoted as saying:
We have a proposal that we actually want to put there that can help create at least an idea of how to move forward. But it requires a lot of people’s input.
Coinbase recently had a problem with the SEC over its non-paying products which the Commission considers a security. The SEC threatened to sue the company if it proceeded with the product without registering it, and persuaded Coinbase to abandon plans to launch the product.
SEC Chairman Gary Gensler recently explained that crypto platforms that receive funds from investors and provide returns “should carefully consider their securities laws and talk to the company about being registered.”
What do you think of the Coinbase meeting with U.S. lawmakers to discuss a regulatory framework for cryptocurrency? Let us know in the comments section below.
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