The largest U.S. cryptocurrency exchange is pulling out all the stops to make sure U.S. policymakers get the crypto industry right.
The company announced Crypto435 a grassroots initiative to expand pro-cryptocurrency outreach to citizens in all 435 congressional districts. As Coinbase tweeted Tuesday, the initiative provides an opportunity for cryptocurrency and Web 3 enthusiasts to have their voices heard in DC. Coinbase will provide the community with a variety of tips related to local politicians and the crypto space including their contact information, their crypto policy records, and how best to ensure those with a voice are heard.
After the disastrous collapse of FTX in November, interest in the cryptocurrency — and more specifically, skepticism about it — surged across Congress and regulators. The political discussion around crypto regulation has taken a negative turn in Washington, with experts calling for restrictions on the industry’s access to the banking system and a Senate Banking Committee proposing an outright ban.
The exchange claims that Crypto435 will "influence law and policy" and "educate ordinary Americans about the power of cryptocurrencies." Pressure from federal regulators notably the U.S. Securities and Exchange Commission (SEC) is also mounting. In February alone, the agency fined Kraken for its staking-as-a-service product, issued a Wells Notice against Paxos for issuing BUSD, and launched an investigation into Robinhood over its cryptocurrency listing.
Some industry supporters in Washington have criticized the SEC for regulating "by enforcement" rather than providing the necessary clarity for crypto companies to comply with the law -- including the agency's own Hester Pierce. Coinbase CEO Brian Armstrong stood by her claim while opposing many of the SEC's assertions that certain crypto products, including staking services and tokens, are securities.
Confusion around these topics has prompted the industry to turn to Congress, which has yet to pass any new laws to clarify how cryptocurrencies are classified or which agencies should oversee them
