Coinbase has unveiled the initiation of an advocacy group dedicated to furthering the crypto community’s interests.
Named the Stand with Crypto Alliance, this autonomous nonprofit entity seeks to rally backing for legislative measures intended to establish a regulatory infrastructure for digital currencies in the US.
In a recent conversation with CNN Business, Coinbase’s chief policy officer, Faryar Shirzad, mentioned, “Some politicians seem to view crypto as an easy target. They might not fully grasp the depth of commitment and the robust community that supports it.”
The organization’s foremost objective is to serve as a mediator between the crypto community and US regulatory bodies, given the recurrent disagreements regarding the industry’s regulatory approach.
Recently, the dynamics between the crypto sector and the US government have been notably strained.
The unexpected downfall of prominent crypto entities, such as the FTX exchange, as well as crypto lenders like Celsius Network and Three Arrows Capital, has led regulators and policymakers to be more cautious and stringent regarding digital assets.
A central debate revolves around the appropriate regulatory framework for crypto tokens.
The U.S. Securities and Exchange Commission (SEC) maintains that the majority of cryptocurrency products should be classified as investment contracts, thereby falling within its regulatory purview.
Conversely, the crypto community strongly disputes this stance.
Recently, a verdict from a U.S. court sided with the crypto sector in an ongoing legal battle initiated by the SEC against Ripple. The SEC alleged that the trading of XRP (XRP) on platforms was tantamount to offering an investment contract.
However, the District Court for the Southern District of New York concluded that the “trading of XRP on cryptocurrency exchanges did not equate to the offering and selling of investment contracts.”
Coinbase Aims to Push For Regulatory Clarity with New Advocacy Group
Coinbase is taking initiative with the Stand with Crypto Alliance, advocating for a definitive regulatory landscape in the US.
The objective of this nonprofit is to rally the dispersed crypto community, signaling to legislators that it’s time to take decisive action.
The sentiment they’re expressing is clear: “The crypto community in America is a force to be reckoned with. As Congress deliberates on pragmatic legislation this fall, the community will be keenly watching, advocating for consumer protection and their inherent right to cryptocurrency.”
While cryptocurrency adoption has seen consistent growth, there remain challenges to overcome before it achieves widespread recognition and acceptance.
Cryptocurrencies hold promise in enabling immediate and cost-free financial operations. Enthusiasts regard the blockchain, the foundational tech behind crypto, as the upcoming paradigm in international finance.
Yet, the main roadblock to its widespread adoption is regulatory uncertainty, which discourages potential investors from delving into this domain.
The Stand with Crypto Alliance represents an evolution of Coinbase’s earlier initiative, Crypto435, whose purpose was to unite the crypto community concerning legislative concerns.
Shirzad commented on the response to Crypto435, saying, “The enthusiasm and feedback we received were quite unexpected and overwhelming.”
He noted that the immense drive and momentum observed across all 435 congressional districts signaled a need for evolution. “Given the substantial energy and motivation we witnessed, it became evident that we needed to take things a step further.”
By introducing the Stand with Crypto Alliance, Coinbase aspires to unite crypto supporters from various backgrounds. The goal is to champion a regulatory structure that ensures consumer safety while simultaneously fostering innovation in the space.
