On September 27, Coinbase CEO, Brian Armstrong, and a group of US based crypto entrepreneurs embarked on a mission to Washington D.C. to persuade lawmakers to support a new spectrum of rules for digital currencies. The rules, previously approved by the Republican-led House Financial Services Committee and House Committee on Agriculture, aim to simplify regulatory compliance for crypto firms. The Coinbase group, which included 40 crypto founders from all over the US, further underscored the need for the country to join the rest of the G20 nations in implementing clear regulations for the industry.
However, despite these efforts, some reports suggest that Coinbase may face a challenging uphill battle. Congressional attention may be low due to the ongoing federal level budget disputes and increased Senate efforts to crack down on crypto money laundering. These circumstances might hinder the acknowledgement and support for the new set of rules in discussions.
Community members had differing reactions to the campaign, exemplifying the dynamic and subjective nature of crypto regulation perspectives. While some extended their support for Coinbase’s efforts, others speculated on the reasons behind why some politicians might be against the blockchain. Policies might be more driven by political interests, rather than industry advances.
The ‘Coinbase Stand with Crypto’ campaign follows the US Securities and Exchange Commission’s (SEC) legal actions against the crypto exchange. They were sued by the SEC on June 6 for allegedly offering unregistered securities on their crypto trading platform. This led the exchange to release non-fungible tokens (NFTs) to engage support from crypto community members in their fight for favorable crypto policies. The move saw a split response from community members, with some offering support by minting the NFTs and others expressing doubts about its potential impact.
This whole episode underlines the importance of regulatory clarity in the sustained growth of the crypto industry. Ambiguity and inconsistency in rules could create roadblocks for firms, hinder innovation and discourage potential users. Conversely, clear and enabling regulations could provide a much-needed springboard for the industry to continue its transformational trajectory. While the campaign run by Coinbase is a commendable step towards effecting meaningful regulatory changes, it embodies a larger conversation on sound crypto governance.
Source: Cointelegraph
