America’s largest cryptocurrency exchange is pulling out all the stops to ensure U.S. policymakers get things right with how they treat the crypto industry.
The company has announced Crypto435 – a grassroots initiative to expand pro-crypto advocacy to citizens across all 435 Congressional Districts.
As tweeted by Coinbase on Tuesday, the initiative presents an opportunity for lovers of crypto and web 3 to make their opinions known in DC. Coinbase will provide the community with various tips related to local politicians and the crypto landscape – including their contact information, their records on crypto policy, and how best to make sure those with a voice can be heard.
“The crypto community has reached an important moment,” stated Coinbase. “Decisions being made by legislators and regulators in DC and around the country will impact the future of how we can build, buy, sell, and use crypto.”
Congressional and regulatory interest in crypto – and more specifically, skepticism of it — has surged in the wake of FTX’s calamitous collapse in November. Political discussion surrounding crypto regulation has taken a negative turn in Washington, between expert calls to restrict the industry from the banking system, and the Senate Banking Committee floating an outright ban on it.
The exchange claims that Crypto435 will “influence laws and policies,” and also “educate everyday Americans about the power of crypto.”
Pressure from federal regulators – particularly the Securities and Exchange Commission (SEC) – is also ramping up. In February alone, the agency fined Kraken for its staking-as-a-service product, issued Wells notice against Paxos for issuing BUSD, and launched an investigation into Robinhood over its cryptocurrency listings.
Some of the industry’s supporters in Washington have criticized the SEC for regulating “by enforcement” rather than providing necessary clarity for crypto firms to follow the law – including the agency’s own Hester Peirce. Coinbase CEO Brian Armstrong has backed her claims while opposing many of the SEC’s assertions that certain crypto products, including staking services and tokens, are securities.
Confusion around such subjects has prompted the industry to turn to congress, which is yet to pass any new laws clearing the air on how to classify cryptocurrencies or determine which agencies should oversee them.
“We need thoughtful policymaking and smart regulation so that we can continue to advance crypto and web3, and make progress on our mission to increase economic freedom,” wrote Coinbase.