Coinbase recently announced a noteworthy addition to its team, with the establishment of a global advisory council composed of several former US lawmakers. The first members of this council are former Senator Patrick Toomey, R-Pa., and two former Democratic congresspeople, Tim Ryan and Sean Patrick Maloney. The move is part of the crypto exchange’s efforts to “help navigate” through the evolving crypto regulatory landscape and potentially reestablish a positive relationship with American regulators.
The formation of this council highlights a significant step taken by Coinbase in dealing with the challenges posed by both US and global regulatory pressures. In a statement released last Friday, the company emphasized the importance of the US in its operations, stating, “We chose to build in America because we want to be part of the solution and believe America would be best served by embracing the potential of crypto and blockchain technology.” The newly-formed council is expected to play a crucial role in helping Coinbase work with regulators towards achieving this goal.
Coinbase’s decision to form a council follows a similar move by Binance in September 2022. Binance’s advisory board, which is led by Max Baucus, a former Democratic senator from Montana and US ambassador to China, has likely served as an inspiration for Coinbase. Furthermore, Coinbase’s new council will collaborate closely with members of another Coinbase advisory board, which includes former SEC Chair Jay Clayton and former CIA General Counsel Courtney Elwood.
This latest development comes soon after Coinbase expressed interest in expanding internationally, with Bermuda becoming the first nation to welcome them. In light of the SEC issuing a Wells notice to Coinbase in late March for alleged securities violations, CEO Brian Armstrong hinted that relocating outside the US “is on the table.” His statement came only two years after the company went public.
As part of its plans for future developments, Coinbase stated that it aims to expand the council this year by involving “a bipartisan group of leaders with deep regulatory expertise.” While it is clear that the crypto exchange is making significant strides to navigate the complex regulatory landscape it operates in, the extent to which these moves will benefit the company, especially in the context of its relationship with US regulators, remains to be seen.
Source: Blockworks
