Brian Armstrong, the CEO of Coinbase, has revealed that recent developments in the cryptocurrency industry, including the Ripple ruling and proposals for crypto Exchange-Traded Funds (ETFs), have prompted US lawmakers to prioritize regulatory clarity for digital assets. According to a report by Axios on July 24, Armstrong met with key officials on July 20 to discuss upcoming legislation aimed at providing clear regulations for the crypto space.
The Securities and Exchange Commission’s (SEC) lawsuit against Ripple, where the court ruled that XRP did not primarily qualify as a security, reportedly played a crucial role in driving urgency among members of Congress. Armstrong specifically mentioned that Representative Patrick McHenry is fully committed to pushing for legislation, while Representative Maxine Waters is deeply examining the matter.
The introduction of draft bills related to cryptocurrencies and blockchain technology in both the House of Representatives and the Senate has further contributed to the sense of urgency among lawmakers. These bills include the Financial Innovation and Technology for the 21st Century Act, Responsible Financial Innovation Act, Digital Asset Anti-Money Laundering Act, and Digital Asset Market Structure bill. The SEC vs. Ripple ruling has created a sense of optimism among legislators, encouraging them to seek a legislative path instead of relying solely on court decisions.
Coinbase, a major cryptocurrency exchange, is currently facing its own lawsuit from the SEC, which accused the platform of violating securities laws. In response, Coinbase executives have publicly disputed the allegations, claiming that the commission is enforcing regulations on a case-by-case basis.
Previously, Coinbase had announced plans to hold a “Stand for Crypto Day” in Washington, DC, on July 19, aiming to rally support for crypto-friendly policies among members of Congress. However, it appears that the event did not take place as initially intended, as there was no activity related to it on Coinbase’s social media channels during that time. Nevertheless, the company’s efforts and the recent discussions with lawmakers show the growing importance of regulatory clarity in the rapidly evolving cryptocurrency industry.