The largest U.S. cryptocurrency exchange is stepping up its grassroots advocacy campaign to advance legislation providing regulatory clarity for the industry. Coinbase said on Tuesday that it’s launching “#Crypto435,” a campaign that will encourage its users to contact their local lawmakers and urge them to support pro-crypto policies.
The initiative will include paid media on platforms like Twitter and Facebook, alongside calls-to-action on Coinbase’s platform urging crypto holders to advocate for their views. It will also host an event in Washington, DC, next month. Coinbase’s head of U.S. Policy, Kara Calvert, said it’s critical that the U.S. “remain on the cutting edge of innovation — whether that’s biotech, semiconductors, machine learning, or digital assets.”
Cryptocurrency is unique because its core technology is volatile assets traded on public markets without intermediaries. She said that that’s made it attractive to opportunists who take advantage of individual investors, adding that the government must set clear rules for digital asset trading to protect consumers and ensure innovation continues.
Investors and lawmakers have been pushing for clarity on how the industry should be regulated, and some legislation has already moved forward in Congress. In July, A congressional committee advanced a bill defining when a cryptocurrency is a security or a commodity. The industry wants that bill to go to a full vote in the House of Representatives.
However, the measure is facing pushback from some members of Congress who say it would roll back consumer protections installed by the Securities and Exchange Commission. Coinbase’s campaign also comes as it faces scrutiny from regulators and is battling an SEC lawsuit.
Several state legislatures have also launched initiatives to create new rules for the industry, including measures to limit how much information companies can share about their customers. A California bill, for example, could require companies to disclose the identities of all their clients – a move that would have significant implications for the industry’s growth.
The Stand with Crypto Alliance is the first independent nonprofit organization to focus on advancing legislation for digital assets, Coinbase says. Venture capital firm Andreessen Horowitz backs the program, and the Coinbase site highlights certain pro-crypto legislators, such as Republican Cynthia Lummis of Wyoming and Democrats Josh Gottheimer and Ritchie Torres of New York.
But the program also highlights lawmakers opposing cryptocurrency, such as Democratic Senator Elizabeth Warren of Massachusetts. The program’s page also includes resources for individuals who want to make their voices heard in the legislature. It also allows people to donate to the initiative. It’s not clear how much the initiative has raised so far. The campaign’s launch follows a town hall Coinbase hosted with its users on Feb. 28. The event was a response to the SEC’s lawsuit against the company over alleged unregistered securities offerings. The exchange has fought the SEC’s charges in court and is fighting to have the case dismissed.
