Written by Hazel J. Greene, Senior Analyst

On the horizon of the United States’ evolving crypto landscape, Brian Armstrong, Chief Executive Officer of Coinbase, is preparing to hold a meeting with Democrats from the United States House of Representatives this Wednesday. With the aim to explore a range of issues, this closed-door meeting with the New Democrat Coalition is likely to shed light on topics including digital-asset legislation, tax, national security, privacy, and climate.

Established in 1997, the New Democrat Coalition boasts a notable presence as one of the largest Democratic Caucuses in the House, comprising around 100 members dedicated to promoting pro-economic growth, pro-innovation, and fiscally responsible policies. This meeting signifies an opportunity for both sides to engage in meaningful discussions and forge a path towards a well-regulated crypto industry.

Ever since the United States Securities and Exchange Commission (SEC) introduced stringent regulatory measures for the crypto industry, Brian Armstrong has been vocal about the need for clear guidelines. During his meeting with the SEC in April, Armstrong emphasized the necessity for regulators to establish policies before enforcing them, indicating the potential requirement for Congress to play a role in shaping the regulatory landscape.

In response to the growing need for regulatory clarity, lawmakers have introduced two distinct bills aimed at bringing order and stability to the crypto space. The House bill proposes mandating crypto exchanges to register with the SEC for trading digital assets, commodities, stablecoins, and related assets. Conversely, the Senate bill suggests granting authority to the Commodity Futures Trading Commission (CFTC) to supervise and regulate crypto exchanges’ operations.

It is crucial to acknowledge that Brian Armstrong’s meeting with the New Democrat Coalition occurs amidst Coinbase’s ongoing legal battle with the SEC. This year, the SEC has taken a proactive stance in regulating the crypto industry, initiating crackdowns on various players, including Coinbase. In a June 6 statement, the SEC accused Coinbase of operating as an “unregistered securities exchange, broker, and clearing agency.”

Coinbase responded to the SEC lawsuit by highlighting the lack of a clear regulatory framework for the crypto industry. The company expressed a willingness to go to court in order to attain the much-needed clarity surrounding crypto rules. Last week, the initial pre-motion hearing, presided over by Judge Katherine Polka Falia, took place, coinciding with another significant legal development in the crypto space: the court’s ruling that XRP is not a security in the Ripple vs SEC case. Following this news, Coinbase’s market shares experienced a notable surge by over 33% within 24 hours.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.