Coinbase CEO and House Democrats to Talk Crypto Regulations: Reports

Coinbase CEO and House Democrats to Talk Crypto Regulations: Reports

Coinbase CEO Brian Armstrong is scheduled to have a private meeting with Democratic representatives from the U.S. House of Representatives on Wednesday morning. This meeting comes as Coinbase, a popular cryptocurrency exchange, is currently entangled in a legal dispute with the U.S. Securities and Exchange Commission (SEC). 

According to reliable sources within the Democratic Party, as reported by Bloomberg on Monday, the meeting will be held behind closed doors.

During the meeting, the discussions will revolve around digital-asset legislation and various related topics such as taxation, national security, privacy, and climate concerns. The purpose is to address the regulatory landscape surrounding cryptocurrencies. 

In recent times, lawmakers from both the House and Senate have introduced separate bills in an effort to provide clearer guidelines for crypto regulation. However, the prospects of these legislative efforts succeeding remain uncertain due to the divided nature of Congress.

Armstrong will be meeting privately with members of the New Democrat Coalition, which is a caucus comprising more than 100 Democrats. The coalition identifies itself as dedicated to promoting economic growth, innovation, and responsible fiscal policies. The website outlines these priorities and principles. This meeting holds significance as it demonstrates Coinbase CEO’s engagement with lawmakers who align with the coalition's objectives.

The U.S. Securities and Exchange Commission (SEC) filed charges against Coinbase, accusing the company of violating federal securities law in June this year. In response, Coinbase issued a statement asserting that the SEC's actions infringed upon due process and represented an abuse of discretion. 

Following recent legal developments, Coinbase experienced a notable surge in its stock value on Thursday. This increase occurred after a court ruling in a case involving Ripple, which indirectly impacted the broader cryptocurrency industry. 

The court ruled that Ripple's XRP token should not be classified as a security. This decision was seen as a partial victory for Ripple and carried implications for the overall regulatory landscape of the crypto industry.

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