The Nasdaq-listed crypto exchange Coinbase has been meeting with members of Congress to discuss the cryptocurrency regulation it plans to propose, according to CEO Brian Armstrong. Additionally, the company has met with over 30 crypto companies, four major law firms, and three business groups about its crypto proposal.
Coinbase Meeting Congress Members and Crypto Firms on Regulatory Framework for Crypto
Coinbase is on a mission to influence crypto regulation in the U.S. CEO Brian Armstrong tweeted Thursday:
We have now met with over 30 crypto companies, over 25 congressmen and / or staff, 4 major law firms and 3 trade groups about our regulatory proposal for crypto. Our policy team is doing great work and we’re trying to be part of the solution.
Armstrong first revealed that his company was preparing a draft regulatory framework to submit to lawmakers in an interview with Techcrunch Disrupt 2021 on September 22. He said that he expected to begin distributing the crypto regulatory proposal this month.
The CEO revealed that he has been repeatedly asked for a proposal for a crypto regulatory framework, as regulators often seek industry input when creating new rules.
He shared during the interview: “When I go to DC, I’ve met with a number of people in government, and they typically will ask us ‘Well, do you have a draft, do you have a proposal of something we could try to shop around about how this could be regulated federally?’”
Armstrong noted that Coinbase is currently licensed as a money transmitter and lender in 50 states. He added that Coinbase operates under the purview of the Financial Crimes 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 of Foreign Assets Control (OFAC).
The Coinbase boss has indicated that he prefers a federal framework instead of having to deal with independent state-by-state rules and agencies. He was quoted as saying:
We have a proposal that we actually want to put out there that could help maybe create at least one idea about how to move forward. But it’s going to require the contribution of a lot of people.
Coinbase recently ran into trouble with the SEC over its lending product which the Commission considers to be a security. The SEC threatened to sue the company if it went ahead with the Lend product without registering, prompting Coinbase to abandon its plan to launch the product.
SEC Chairman Gary Gensler recently explained that crypto platforms that accepted funds from investors and offered returns “should consider the securities laws carefully and talk to the agency about getting registered.”
