According to CEO Brian Armstrong, the Nasdaq-listed cryptocurrency exchange Coinbase has been meeting with members of Congress to discuss the proposed cryptocurrency regulation. Additionally, the company has met with over 30 cryptocurrency companies. Four major law firms and three trade associations to discuss their crypto proposition.
Coinbase to Meet with Members of Congress and Crypto Firms to Discuss the Regulatory Framework for Crypto
Coinbase CEO Brian Armstrong tweeted Thursday: “Coinbase is on a mission to impact crypto regulation in the United States.”
“We’ve now spoken with more than 30 cryptocurrency startups, 25 members of Congress and/or staff, four large law firms, and three trade associations to discuss our proposed cryptocurrency regulatory framework. Our policy staff is doing an excellent job, and we are attempting to contribute to the solution.”
A draft regulatory framework was being prepared by Armstrong’s company, he told Techcrunch Disrupt 2021 attendees on September 22, and it would be presented to politicians. As of yet, the cryptocurrency regulatory proposal hasn’t widely distributed, but he plans to start doing so this month.
The CEO acknowledged he has asked for advice on a crypto regulatory framework several times. As When asked for an advice on cryptocurrency regulation, the CEO claimed he had approached the company several times. Regulators routinely consult businesses when drafting new rules.
He explained during the interview, “When I visit Washington, DC, I meet with a number of government officials, and they often ask us, ‘Do you have a draft, do you have a suggestion for how this controls federally?'”
Coinbase is a money transmitter and lender in 50 states, according to Armstrong. Coinbase regulates by 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, he noted (OFAC).
To cope with state-by-state regulations and authorities, the CEO of Coinbase wanted a nationwide framework, according to the executive. He reportedly mentioned the following, according to reports:
“We have a concept that we would want to put out there in the hopes of generating at least one notion. However, this will require input from a large number of people.”
Coinbase recently came afoul of the Securities and Exchange Commission over its lending product, which the Commission classifies as security. The SEC threatened to sue Coinbase if it proceeded with the Lend program without first registering it. Causing Coinbase to suspend its plans to launch the product.
SEC Chairman Gary Gensler recently stated that cryptocurrency platforms that accept investor cash. It gives returns “should carefully evaluate the securities regulations and speak with the agency about being registered.”
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