Cryptoccurrency giant COINBASE launched a grassroots campaign to steer U.S. gov't policymaking towards more crypto-friendly regulations. This is seemingly in response to Securities and Exchange Commission (SEC) head Gary Gensler's recent comments regarding cryptocurrencies. All cryptocurrencies, save for Bitcoin, can be defined as a security, Gensler says, causing much alarm among cryptocurrency traders and companies.
1/ It’s time to advance pro-crypto policy in all 435 Congressional Districts across the U.S.
Introducing #Crypto435, our campaign to grow the crypto advocacy community and share tools and resources to make your voice heard.
Become an advocate today ?? https://t.co/TPJhtoP9eC
— Coinbase (@coinbase) February 28, 2023
The SEC, it might be recalled, has tightly clamped down on crypto exchanges with Gensler notably claiming that Ether was a security. He has also recently strongly urged crypto exchanges to register as securities trading platforms. Reactions by crypto exchanges as well as traders have been mostly negative, with Coinbase CEO Brian Armstrong leading the charge to defend crypto.
Now, the popular exchange has launched its Crypto435 ('435' referring to the United States' 435 congressional districts) campaign as the necessary next step to bring the crypto community together and influence the country's laws and policies. It cited the need to "educate everyday Americans" about cryptocurrency, as well as help policymakers "get it right" when it comes to cryptocurrency matters.
It is glaring that the United States Congress has not passed sufficient policies for cryptocurrency and the resulting confusion has caused rifts between the SEC and crypto exchanges, most notably with Nexo leaving the country last December. Nexo has claimed that months of dialogue with the commission regarding compliance to US laws have produced nothing, hence their decision to leave. And it certainly does not help that Gensler has publicly stated that there is no need for further legislation for cryptocurrencies.
Coinbase is currently calling on its users to join Crypto435, which will involve establishing open communication channels with representatives in Congress, as well as participating in their Coinbase-sponsored events with the aim of educating a broader audience about crypto. Coinbase's recent initiative might pave the way for crypto companies and everyday traders to form a unified voice when it comes to cryptocurrency policies, as well as promote greater public acceptance of cryptocurrency. The company's hope is that with enough lobbying and grassroots efforts, the crypto industry would be able to develop proper regulations that allow for innovation and financial inclusion for all.
