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

<p>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.</p><p>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.</p><p>Stand with Crypto
Alliance</p><p>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 <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> in the US. This
is despite 50 million Americans having already invested in the asset class.</p><p>"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.</p><p>In July, the exchange submitted a petition to the <a href="https://www.financemagnates.com/terms/s/securities-and-exchange-commission-sec/" target="_blank" rel="follow">Securities
and Exchange Commission</a> (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 <a href="https://www.financemagnates.com/terms/r/regulation/">regulation</a> could
result in the US lagging behind in innovation in the cryptocurrency sector.</p><p>Coinbase Pushes for
Reforms</p><p>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.</p><p>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 href="https://www.financemagnates.com/cryptocurrency/coinbase-dismisses-sec-allegations-claims-extraordinary-abuse-of-process/" target="_blank" rel="follow">a
lack of clear regulatory guidelines</a> for
the sector could put numerous jobs at risk.</p><p>In June, the SEC <a href="https://www.financemagnates.com/cryptocurrency/after-binance-sec-sues-coinbase-over-illegal-operation-of-crypto-exchange/" target="_blank" rel="follow">took
legal action</a> 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'.</p>

This article was written by Jared Kirui at www.financemagnates.com.