Coinbase Takes On SEC: Launches Lobbying Initiative to Protect Industry amid Lawsuit

Coinbase has launched a lobby group in a retaliatory move against what the US-based cryptocurrency exchange has for a long time described as an unclear regulatory framework for the industry. The group will reportedly shape the crypto regulatory landscape, influence regulatory decisions, and safeguard the interests of the industry.

Dubbed Stand with Crypto Alliance, the group will reportedly bring together the dispersed crypto community to speak with a unified voice. Thus, according to a statement by the company, Stand with Crypto Alliance will advocate for forward-thinking policies aimed at modernizing the financial system in the US.

Stand with Crypto Alliance

Additionally, the alliance will rally the decentralized cryptocurrency community to hold the lawmakers accountable as Congress convenes to vote on legislation aimed at protecting consumers. While unveiling the group, Coinbase stated that there were mounting risks facing the future of cryptocurrencies in the US. This is despite 50 million Americans having already invested in the asset class.

"For far too long, lawmakers have kicked the can on writing clear rules of the road, allowing unelected, uninformed regulators to reign unchecked, pursuing policies that are undermining the economic security of the US, and putting its leadership in innovation at risk," Coinbase said.

In July, the exchange submitted a petition to the Securities and Exchange Commission (SEC), expressing concerns over what it termed as inadequate regulations for cryptocurrencies. In a blog post, Coinbase's Chief Policy Officer, Faryar Shirzad, emphasized that a lack of effective regulation could result in the US lagging behind in innovation in the cryptocurrency sector.

Coinbase Pushes for Reforms

According to a statement released yesterday (Monday), the Stand with Crypto Alliance's debut resulted in the creation of more than 160,000 'crypto shields'. This has raised USD $215,000 for crypto advocacy groups, along with a pro-crypto on-chain petition which has garnered more than 180,000 signatures.

Additionally, Coinbase maintains that a staggering 87% of Americans believe that the financial system needs substantial reforms if not a complete overhaul. The exchange highlighted that a lack of clear regulatory guidelines for the sector could put numerous jobs at risk.

In June, the SEC took legal action against Coinbase for allegedly operating its platform for trading crypto assets without the necessary registration. Additionally, the regulator stated that about 13 crypto assets offered by Coinbase, including tokens native to blockchain networks Solana and Cardano, meet the criteria for classification as 'crypto asset securities'.