By George Ward
As SEC Chair Gary Gensler prepares for his upcoming congressional testimony, the pro-crypto nonprofit Stand With Crypto (SWC), established by Coinbase cryptocurrency exchange, has initiated a comprehensive campaign. The campaign aims to magnify the influence of pro-crypto stakeholders nationwide and rally broad backing for the FIT21 Act (Financial Innovation and Technology for the 21st Century Act).
This crucial legislation is geared towards ushering in a fresh era of regulatory transparency in the rapidly growing crypto industry.
Coinbase’s Campaign For Pro-Crypto Policies
Launched in April, the Stand With Crypto initiative has become a formidable proponent of crypto-friendly policies. Since its establishment, the campaign has experienced impressive expansion, garnering tens of thousands of dedicated supporters, according to Coinbase’s reports.
In a strategic move to bolster its advocacy efforts, the exchange increased its federal lobbying expenditure from $1.5 million to $3.4 million. This massive increase underscores the growing influence and commitment of the crypto community to effecting positive change in the regulatory landscape.
Kara Calvert, Coinbase’s Head of US Policy, emphasized the firm’s steadfast commitment to assisting the cryptocurrency community in terms of friendly regulations and other operational conditions. He said, “The 52 million-strong crypto demographics in America is not only actively involved but also determined in their quest for transparency and safeguards, both as consumers and as crucial contributors to the labor force.”
The campaign has strategically set its sights on nine pivotal swing states, where it endeavors to mobilize constituents, urging them to actively engage with their lawmakers and advocate zealously for the FIT21 Act. This legislative proposal, endorsed by a coalition of influential figures within the crypto industry, in addition to Coinbase, seeks to provide much-needed clarity and structure to the evolving landscape of digital currencies and blockchain technology.
Similar to the Stand With Crypto campaign, Coinbase has also championed the Stand With Crypto Alliance (SWA), an additional initiative designed to galvanize support for the crypto industry. The SWA encourages visitors to its website to take proactive steps by contacting their congressional representatives.
The SWA website explained that the move will solidify their stance and lead to a dynamic and progressive crypto ecosystem. Notably, the website offers valuable insights into lawmakers’ sentiments regarding crypto, utilizing a comprehensive analysis of publicly available data with detailed legislative records, media pronouncements, and social media discourse.
Gensler’s Testimony And Regulatory Concerns
This campaign takes place in a context of notable implications. SEC Chair Gensler is scheduled to deliver a pivotal testimony before the House Financial Services Committee. Gensler’s earlier statements suggesting his dislike for crypto and blockchain have resonated within the crypto sphere.
One of his remarkable comments was, “I’ve never witnessed an industry so saturated with misconduct.” Despite the SEC’s ongoing legal proceedings against Coinbase, alleging the sale of unregistered securities, the crypto industry players continue to seek resolute regulatory guidance.
Coinbase asserts that the digital assets in question do not fall within the purview of securities. Moreover, the crypto exchange’s lawyers argue that the SEC’s intervention represents a marked overreach of its designated authority.
However, it is worth clarifying that neither the CFTC nor the US SEC has an exclusive oversight function over the crypto industry. They can only exercise their regulatory responsibilities once there is a precise categorization of crypto as securities or commodities.