Armstrong Set to Discuss Crypto Regulation with Congressional Democrats
Coinbase CEO, Brian Armstrong, is expected to have a private discussion with Democratic members from the House of Representatives on Wednesday morning, according to Bloomberg. This confidential dialogue comes amid Coinbase's ongoing legal scuffle with the U.S. Securities and Exchange Commission (SEC). The meeting was arranged by the New Democrat Coalition, a caucus comprising over a hundred Democrats committed to promoting economic growth, fostering innovation, and implementing fiscally responsible policies.
Focus on Digital Asset Legislation Amid Growing Regulatory Uncertainty
The discussions will revolve around "digital-asset legislation and other associated topics like taxation, national security, privacy, and climate change," as reported. Legislators from both the House and Senate have lately introduced separate bills to demystify crypto regulations. However, the effectiveness of these efforts remains questionable due to a divided Congress.
Coinbase's Tussle with the SEC and Market Reactions
In a recent development, the SEC accused Coinbase of contravening federal securities law on June 6. Coinbase retaliated, claiming the SEC's action is an infringement of due process and an abuse of discretion. The cryptocurrency exchange's shares experienced a surge of over 24% on Thursday. This followed a court's partial victory to Ripple and by association, the crypto industry, ruling that Ripple's XRP token isn't a security.
Awaiting Responses from Coinbase and the New Democratic Coalition
Both Coinbase and the New Democratic Coalition were not immediately available for comments early Tuesday morning, before the U.S. office hours.