Nasdaq-listed cryptocurrency exchange Coinbase is meeting with members of Congress to discuss the list of cryptocurrencies it plans to propose, CEO Brian Armstrong said. In addition, the company has met with more than 30 crypto firms, four major law firms, and three trade groups about its cryptocurrency proposal.
Coinbase Meeting with Members of Congress and Crypto Firms on the Regulatory Framework for Cryptocurrency
Coinbase on a mission to influence crypto regulation US CEO Brian Armstrong on Twitter Thursday:
We have now interviewed over 30 crypto firms, over 25 members of Congress and/or staff, 4 major law firms, and 3 trade groups about our crypto regulatory proposal. Our policy team is doing a great job and we are trying to be part of the solution.
Armstrong first revealed that his company was preparing a draft regulatory framework to present to lawmakers in an interview at Techcrunch Disrupt 2021 on September 22. He said he expects the distribution of the crypto regulatory proposal to begin this month.
The CEO revealed that he has been asked multiple times to propose a regulatory framework for cryptocurrency as regulators often seek industry feedback when creating new rules.
He shared during the interview: “When I go to Washington, I meet a number of people in the government, and they usually ask us ‘OK, do you have a draft, do you have a suggestion of something we can try to shop around on how that might be regulated at the federal level? “
Armstrong noted that Coinbase is currently licensed as a money transmitter and lender in 50 states. He added that Coinbase operates under the supervision 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 Bureau. Foreign Assets Control (OFAC).
The Coinbase chief indicated that he would prefer a federal framework rather than having to deal with individual country-by-state rules and agencies. He was quoted as saying:
We have a suggestion we really want to make that can help form at least one idea of how to move forward. But this will require input from a lot of people.
Coinbase recently had problems with the Securities and Exchange Commission over its lending product that the commission considers collateral. The SEC has threatened to sue the company if it goes ahead with the Lend product without registering, prompting Coinbase to abandon its plan to launch the product.
SEC President Gary Gensler recently explained that crypto platforms that accept funds from investors and offer returns “should look at securities laws carefully and talk to the agency about registration.”
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