Scheduled to speak on cryptocurrency legislation
Brian Armstrong, CEO of major US crypto asset (virtual currency) exchange Coinbase, will hold an informal meeting with a group of Democrats in the US House of Representatives on the 19th to make remarks on legislation surrounding crypto assets (virtual currency). Reuters and others reported.
A spokesperson for a group of Democratic lawmakers said Mr. Armstrong will also discuss related issues at the meeting, including taxes, national security, privacy and the climate.
There was no explanation as to how these issues and cryptocurrencies are specifically related, but it seems possible that they are related to, for example, cryptocurrency taxation and the energy consumption issue related to mining PoW (proof of work) stocks.
The meeting will include members of the New Democrat Coalition, a group of Democratic lawmakers committed to promoting economic growth, innovation and fiscally responsible policies.
In the midst of a lawsuit against the SEC
Coinbase is facing a lawsuit filed by the US Securities and Exchange Commission (SEC). The SEC is suing Coinbase for selling unregistered securities.
Meanwhile, Coinbase has accused the SEC of arbitrarily resorting to legal action without providing clear regulatory guidance. Coinbase has filed a limited lawsuit seeking a response to a petition filed with the SEC last year seeking development of a regulatory framework.
In the case filed by Coinbase, the Court of Appeal ordered the SEC to respond within seven days on the matter, which the SEC has refused.
The SEC will develop internal recommendations for the petition within the next 120 days and will report to the court on the status of the matter by October 11.
connectionUS SEC refuses to respond to Coinbase regulatory petition
The SEC lawsuit against Coinbase has a preliminary hearing in the district court on the 13th.
At the time, Judge Catherine Polka Faira said the SEC’s approval of Coinbase’s Nasdaq listing in 2021 could mean the SEC had some knowledge of Coinbase’s business and the securitization of its tokens.
The SEC countered that the listing approval did not mean that the SEC was examining the token’s securitization.
In addition, at the preliminary hearing, Coinbase claimed that the staking service had no securitization, while the SEC claimed that it could have securitization, clarifying the conflict once again.
connection: U.S. District Judge Offers Opinion in Coinbase v. SEC Case
Comment on the staking service
Coinbase is now following requests from state authorities. We are suspending new staking services in California, New Jersey, South Carolina, and Wisconsin.
State officials allege that Coinbase’s staking service constitutes unregistered securities.
1/ As you might have heard, on June 6, 10 US states initiated proceedings related to Coinbase’s retail staking services. Let’s dig into what this means for our customers. pic.twitter.com/pQidr0Ijc9
— Coinbase (@coinbase) July 14, 2023
Regarding this situation, the official account of Coinbase commented as follows.
Restricting staking in a particular state does not benefit residents of that state. It simply limits the ability of residents of those states to participate in and benefit from the cryptocurrency economy.
But we take compliance very seriously, so we follow state mandates.
He also pointed out that many blockchains currently rely on open, secure and environmentally friendly staking. He continued that he also supports staking from that aspect.
What is staking
Infrastructure and technology that allows different blockchains to interoperate with each other. One of the technologies for using a specific virtual currency on another blockchain is “Wrapped Tokens”. By locking up the original cryptocurrency and creating equivalent Wrapped Tokens, the technology allows various blockchains to leverage its cryptocurrency alternatives.