Coinbase Will Start Donating To Pro-Crypto Candidates In Elections• March 25, 2023 11:16 am • Comments
It is well known within the crypto community that there is a lot of work to do when it comes to improving crypto regulations within the United States.
Coinbase CEO, Brian Armstrong, just shared that the company will now start to donate to pro-crypto candidates in US elections in the hopes to help make this change.
The fact that Coinbase is deciding to do this may be influenced by the fact that Coinbase had just received a Wells Notice from the SEC.
As a result, the firm is facing a lot of regulatory pressure and is likely exploring all ways to improve the situation by both trying to change the regulatory scene at home as well as setup overseas exchange operations.
This way, the company is able to survive and prosper despite what regulatory action is taken against the crypto industry in the future.
This is ridiculous. Coinbase has been here since the beginning and always plays by the rules.
Reminder to everyone to donate to @coincenter. They are crypto's legal team.
If you want an NFT for it, there is a link in my pinned tweet.
— mike.sylphdapps.eth 🦇🔊 (@MikeSylphDapps) March 23, 2023
Specifically, Armstrong urged crypto users to “elect pro-crypto candidates.” Additionally noting that the exchange would be working to organize crypto users to support candidates who could positively impact the industry as a whole.
Since its inception, the issues between the digital asset industry and regulation have been a constant discourse. Now, as the SEC has ramped up its enforcement action against crypto companies, one of the largest US exchanges has taken a stand to speak for the industry in the political sphere.
Specifically, Coinbase CEO, Brian Armstrong, has announced the exchange’s intention to start donating to pro-crypto candidates in US elections.
Moreover, Armstrong called on listeners of a recent Twitter Space to begin using their voice in the political realm.
The company has revealed that it will start to make it easier for crypto users to contact their congressman and become more politically active.
As of right now, the Wells Notice that Coinbase has received from the SEC warns the exchange that they may potentially be dealing with unregistered securities.
It is unclear if the SEC will take any further action beyond just sending this notice, but historical data shows that a Wells Notice typically precedes formal charges.
Therefore, it is clear that Coinbase is taking all actions that it can take to reduce risk of being charged such as removing some programs such as Algorand’s staking rewards program.
The SEC has previously targeted other exchanges such as Kraken for providing similar programs as well.
Brian Armstrong urged crypto proponents to "contact their congressman, donate to pro-crypto candidates, show up at town halls" in an effort to achieve clea…Read more: https://t.co/Gi5Bee9sTt
— webnow🌎 (@webnowcompany) March 23, 2023
It’s unclear if the SEC intends to pursue enforcement action against Coinbase despite the Wells notice. Chief legal officer Paul Grewal said Coinbase had “simply been told nothing” regarding which assets or services the SEC may be targeting. On Twitter Spaces, Armstrong renewed calls for listeners to support a petition to the financial regulator arguing that staking would not qualify as a security subject to its enforcement.
“A reprehensible amount of resources and brainpower have been spent in the U.S. trying to engage with this SEC and trying to create substance and a path out of the wraithlike comments issued by the agency,” Crypto Council for Innovation CEO Sheila Warren said to Cointelegraph.
“Are we really going to allow one agency in the U.S. to set the entire trajectory of an innovation for the entire country, especially if that agency refuses to engage with the industry it is trying to regulate?”
From the very beginning @brian_armstrong made the decision that @Coinbase should play by the rules, engage with regulators and lawmakers, and behave like a responsible actor in what used to be a nascent industry. We should be proud of this exact kind of US-born responsible… https://t.co/kiOijgEUfw
— David Marcus (@davidmarcus) March 23, 2023
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