Coinbase Sounds Battle Cry for "Stand with Crypto Day"
By Noah Washington September 27, 2023
- Coinbase launches "Stand With Crypto Day" to unite its 52 million-strong crypto community for advocacy
- Research highlights Americans' desire for financial system change and the role of crypto in challenging the status quo
- Clear crypto regulation is a big part of Coinbase's multi-pronged campaign
Cryptocurrency exchange Coinbase is rallying the troops for "Stand-up for Crypto Day," a nationwide campaign to advocate for clearer regulation around digital assets. With tens of millions of users, Coinbase has become synonymous with crypto trading in the U.S. Now, it's leveraging its star power to mobilize the American crypto community and drive awareness around the need for more thoughtful crypto regulation.
Beyond its popular trading platform, Coinbase has also been hard at work building the infrastructure of web3. Its layer 2 blockchain Base aims to make blockchain technology more accessible and scalable. And with the weight of its vast user base behind it, Coinbase hopes to spark progress in bringing regulatory clarity to this innovative, transformative space.
Understanding the Need for Change
Coinbase's research into Americans attitudes toward the financial system has revealed a strong desire for change. The study found that 8 in 10 Americans believe that the financial system needs a significant overhaul, and more than half feel that it doesn't work fairly for everyone.
The prevailing sentiment is that the system primarily favors powerful interests, leaving everyday Americans behind. Crypto, with its democratizing potential, has emerged as a beacon of hope. It's not only a means of providing financial access to the underserved, but also a powerful tool for challenging the status quo.
However, The Securities and Exchange Commission (SEC) has aggressively pursued enforcement actions against major players in the cryptocurrency space over the past year.
SEC Cracking Down on Crypto
This crackdown ramped up after the high-profile collapses of Terra/Luna, FTX and Three Arrows Capital in 2022. The SEC has filed charges against exchanges like Kraken, lenders like BlockFi and Nexo, stablecoin issuers like Paxos and celebrities like Kim Kardashian for allegedly offering or promoting unregistered securities.
Crypto markets have gone from all-time high to middling the past two years. Source: CoinGecko
In June 2023, the SEC filed a lawsuit against crypto exchange Coinbase alleging it improperly operated as an unregistered securities broker, exchange and clearinghouse. The suit claims Coinbase offered tokens the company recognized as likely securities without proper disclosures or protections. The SEC pointed to Coinbase's ratings council, Prime services, wallet and staking products as evidence it violated securities laws.
Though Coinbase asked for legislative clarity, the SEC alleged the exchange strategically listed "problematic" tokens to boost growth. The suit names thirteen specific crypto assets the SEC deems securities, including Solana, Cardano, Polygon and others. Coinbase vows to keep operating normally but its share price and the overall crypto market declined on news of the SEC legal action.
Coinbase Files Motion
Coinbase filed a motion to dismiss the SEC's lawsuit alleging the crypto exchange operated illegally as an unregistered broker, exchange and clearing agency for certain cryptocurrencies. Coinbase argues the SEC is overstepping its authority and that the transactions on its platform do not constitute securities or investment contracts.
The exchange points to the recent Ripple ruling that found Ripple's passive sales to the public were not securities transactions. Coinbase also invokes the Major Questions Doctrine, claiming the suit would vastly expand the SEC's jurisdiction into cryptocurrencies without Congressional authority. Coinbase's legal team has expressed confidence they can win the case but stresses their ultimate goal is to achieve clear regulatory rules for the crypto industry.
The Need for Clear Crypto Regulation
While the crypto industry continues to thrive, there is an urgent need for clear and sensible regulation. The current "enforcement-only" approach not only hinders innovation but also jeopardizes job creation and global leadership.
Countries worldwide are actively crafting regulatory frameworks to position themselves as crypto hubs, attracting innovative companies and driving economic growth. The United States risks losing out on millions of developer jobs and related non-technical positions if it fails to establish regulatory clarity.
"Stand with Crypto Day" in Washington, D.C.
One of the pivotal moments of Coinbase's campaign is the "Stand with Crypto Day" in the nation's capital, Washington, D.C., scheduled for September 27th. On this day, innovators, entrepreneurs and developers from across the country will convene to advocate for better cryptocurrency innovation and policy.
Statistics from research on American views about crypto. Source: Coinbase
Participants will emphasize how crypto is driving job creation and economic activity within their respective states. They will stress the importance of moving away from an enforcement-only approach that risks driving jobs, innovation and leadership overseas.
Coinbase's Commitment to Change
Coinbase's "Stand-up for Crypto Day" is not just a symbolic gesture but a concerted effort to bring about genuine change. By mobilizing millions of crypto owners, this campaign has the potential to be a fundamental change in reshaping the financial system to be fairer, more distributed and more inclusive.
Coinbase's commitment to advocating for crypto-friendly policies is evident, and it stands as a symbol of hope for those who believe in the transformative power of cryptocurrency and blockchain technology. The outcome of this campaign could pave the way for a brighter and more inclusive future for the crypto industry and, by extension, for the financial system as a whole.