The CEO of Coinbase, Brian Armstrong will meet Democrats from the House of Representatives in Congress in an important closed-door session on Wednesday, July 19. This comes hot on the heels after the United States Securities and Exchange Commission (SEC) filed a lawsuit against the leading crypto exchange.
What Will be the Topics For Discussion?
According to reports, Armstrong is all set to meet with lawmakers from the New Democrat Coalition, a group of centrist House Democrats, regarding digital asset legislation and other related issues including tax, national security, privacy and climate.
Coinbase CEO to meet US House Democrats on Wednesday – Bloomberg News https://t.co/MvTrdTMDuc pic.twitter.com/ekFmUJx82a
— Reuters (@Reuters) July 18, 2023
In addition, it is likely, the closed-door meeting between Armstrong and House Democrats will also encompass other wide range of issues, including the SEC’s lawsuit against Coinbase, the regulatory landscape surrounding cryptocurrencies, and the potential impact on innovation and investor protection.
It seems the meeting will hold significant importance and give a golden opportunity to the Coinbase CEO to directly address concerns surrounding the recent SEC lawsuit and engage in discussions on other regulatory concerns that have continued to batter the digital assets landscape.
Coinbase CEO and Lawmakers Meet First Time Since SEC Lawsuit
This marks the first time that Armstrong and lawmakers will come face to face since the American watchdog charged Coinbase with breaching federal securities law. In its lawsuit, the federal regulator alleged the second largest crypto exchange operated its crypto asset trading platform as an unregistered national securities exchange and broker.
The SEC also claimed at least 13 crypto assets that Coinbase made available to customers, including Solana (SOL) and Cardano (ADA) tokens, qualified as “crypto asset securities.” Following the legal action, Armstrong, an outspoken critic of the SEC who has led a push in Washington for clearer crypto rules, blasted the SEC along with Chair Gary Gensler over the agency’s lawsuit against the crypto exchange, calling him an “outlier.”
A High Stakes Showdown
In response to the lawsuit, Coinbase also filed a motion urging a New York federal court to dismiss the SEC lawsuit against the company, arguing the agency’s claims are inconsistent and go against previous understandings between the two entities.
Today @coinbase filed our answer and notice of intent to file a motion to dismiss the @SECGov case against us. You can read our response for yourself – our arguments speak for themselves. 1/2 https://t.co/Ld2ZEejhyM
— paulgrewal.eth (@iampaulgrewal) June 29, 2023
On June 29, Paul Grewal, the chief legal officer at Coinbase argued that when the SEC approved Coinbase’s registration statement back in 2021, there was no suggestion that the exchange had to register its operations.
Amidst the fervent crypto related regularity calls around the world, this highly anticipated meeting promises to be a high-stakes showdown between the crypto giant and federal regulators, capturing the attention of crypto enthusiasts, investors, and policymakers alike.
