The exchange’s Chief Executive Officer, Brian Armstrong, made the announcement that the cryptocurrency exchange intends to contribute to individuals that have the potential to favorably influence the industry as a whole.
Armstrong advised users of cryptocurrencies to participate politically and vote for politicians who support the usage of cryptocurrencies.
Coinbase’s political move
It is a huge step towards influencing American politics that Coinbase has decided to endorse crypto-friendly politicians running for office in the United States.
The goal of the exchange is to foster an atmosphere that is more conducive to the growth of the cryptocurrency business by using its available resources and exerting its influence.
A significant advance in the direction of accomplishing this objective is represented by Armstrong’s appeal for users of cryptocurrency to vote for crypto-friendly politicians and to participate in political discourse.
The most recent action by Coinbase comes at a period of regulatory uncertainty, when the SEC is still actively investigating cryptocurrency firms.
While Coinbase received a Wells Notice from the SEC, the exchange is not alone in facing regulatory action. Coinbase seems to be adopting a proactive posture in order to favorably impact the regulatory climate, as seen by its recent shift towards backing politicians that are pro-cryptocurrency.
Coinbase’s statement follows SEC’s Wells Notice
Coinbase’s announcement came a day after the exchange received a Wells Notice from the US Securities and Exchange Commission (SEC) outlining possible violations of securities laws concerning some of the firm’s asset listings, staking services, and Coinbase Wallet.
As the SEC has ramped up its enforcement action against crypto companies, the U.S. top exchange seems to be taking a stand to speak for the industry in the political sphere.
Daniel Seifert, Coinbase’s vice president and regional managing director in Europe, stated in a blog post that the U.S.’s regulatory approach to crypto has been marked by regulation by enforcement, despite industry-wide calls for comprehensive crypto regulation.
The cryptocurrency sector now exists in an atmosphere marked by uncertainty and volatility as a direct result of this strategy. As a consequence of this, the United States is gradually losing its position as the primary center for the cryptocurrency industry, while France, the United Kingdom, and the European Union are now developing thriving ecosystems as a result of their more accommodating attitude to crypto legislation.
Armstrong stated that Coinbase would start putting out content where people can contact their congressmen, donate to pro-crypto candidates, show up at town halls, and make their voice heard. “We are going to elect pro-crypto candidates in this country to make sure that our success is ensured,” he said.
Coinbase’s decision to support pro-crypto candidates follows a long line of companies in the regulator’s crosshairs. Political action seems to be the best route forward for the industry.
The move toward political action seems to be the best route forward for the industry. Nonetheless, Coinbase’s future remains uncertain, and only time will tell how its recent move will play out.