Regulation
Coinbase CEO Brian Armstrong Celebrates House Victory for Clear Crypto Regulation
The House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant milestone in the regulation of cryptocurrencies. CEO of Coinbase Brian Armstrong welcomed the victory, emphasizing the importance of clear and common-sense crypto rules. With 71 Democrats voting in favor, exceeding expectations, the bill now moves to the Senate.
Brian Armstrong celebrates historic FIT21 House vote
According to Armstrong, the House’s approval of FIT21 is a “historic vote.” He believes the move will establish clear rules to regulate cryptocurrency if it becomes law. Armstrong emphasized that Americans want their representatives to protect their rights to use crypto. He added that they are also looking for clear rules to protect consumers, to prevent the lack of clarity from being used by a few activists to illegally target the industry.
Brian Armstrong also highlighted the role of Stand With Crypto, a cryptocurrency advocacy group initiated by Coinbase. This group aims to support the push for sensible regulation in the crypto space. The House vote represents a rejection of efforts to undermine crypto technology, according to Armstrong. He said he was convinced that voters would remember this result.
The passage of FIT21 in the House is just the first step. The bill now goes to the Senate for consideration. However, the Biden administration opposes the bill, arguing that it lacks adequate protections for investors and consumers of digital assets. That opposition could pose a challenge as the Senate debates the bill.
Despite this, the White House said it would not issue a veto threat against FIT21 if it passed the House. This position leaves room for possible negotiations and compromises as the bill progresses. The Senate’s decision will be crucial in determining the future of cryptocurrency regulation in the United States.
Coinbase pushes for clear crypto regulation
In June 2023, the Securities and Exchange Commission (SEC) sued Coinbase for alleged violations of the Securities Act. The lawsuit names 13 cryptocurrencies, including Solana and Cardano, as securities. This legal action followed the SEC’s issuance of a Wells notice against Coinbase in March of that year.
Coinbase has consistently advocated for clearer rules regarding the regulation of digital assets. In March 2024, the company asked an appeals court to order the SEC to create a robust crypto regulatory framework. Coinbase argued that the SECONDAvoiding the rules violated the Administrative Procedure Act. The House’s approval of FIT21 aligns with Coinbase’s long-standing call for regulatory clarity.
Despite the bill’s passage, not all lawmakers are in favor of it. U.S. House Ranking Member Maxine Waters criticized the bill, saying it was not fit for purpose and could create significant loopholes. Other Democrats have also expressed opposition to the crypto bill, echoing concerns about potential gaps in investor protections.
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