Amid the legal suite faced by the crypto exchange, Coinbase Chief Executive Brian Armstrong will meet privately meet with a group of US House of Representatives Democrats on Wednesday.
In the meeting, he will discuss various issues ranging from future of digital asset legislation to tax, national security, privacy, and climate.
Notably, Coinbase, along with Binance, is facing lawsuits brought by he US Securities and Exchange Commission for allegedly failing to register their operations with the agency.
There was no official information or confirmation by Coinbase about the meeting of CEO with US House of Representatives. Brian Armstrong will discuss several issues related to digital-asset legislation and related issues including tax, national security, privacy and climate.
If the SEC lawsuits are successful, they could transform the crypto market by asserting the SEC’s jurisdiction over the industry. For years, key players of the industry have argued that tokens do not constitute securities and should not be regulated by the commission. The Coinbase and Binance have denied the SEC’s allegations and have pledged to vigorously defend themselves in court.
Coinbase CEO, Brian Armstrong has been known to be a vocal critic of SEC and its stance on crypto currency. He has even called SEC Chair Gary Gensler an “outlier” among Washington policymakers.
He is also the main driving force behind a campaign in Washington to create clearer rules around digital assets. The US-based crypto exchange has urged lawmakers to take up two bills that are circulating and would provide clearer guidance on how crypto exchanges can register with regulators.
Notably, the New Democratic Coalition is made up of 100 centre-left members seeking to work across the aisle on a range of issues to “advance innovative, inclusive and forward-looking policies.
On the other hand, SEC alleges Coinbase of defying rules requiring it to register as a securities exchange. However, these claims have been rejected by Coinbase, and the firm has sought to dismiss the lawsuit. The lawsuit, is a part of a wider crackdown on the industry by SEC Chair Gary Gensler, who has moved forward with a series of enforcement actions in recent months.
Brian has pointed out towards the conflicting statements by the SEC and the Commodity Futures Trading Commission. The two different US regulators have authority over parts of the industry. “This is why the US congress is introducing new legislation to fix the situation,” he said.
