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Coinbase CEO Brian Armstrong Celebrates House Victory for Clear Crypto Regulation

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6 months ago

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The House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant step in cryptocurrency regulation. Coinbase CEO Brian Armstrong hailed this victory, emphasizing the importance of clear and sensible crypto rules. With 71 Democrats voting in favor, surpassing expectations, the legislation now heads to the Senate.

Brian Armstrong Celebrates Historic FIT21 House Vote

According to Armstrong, this House approval of FIT21 is a “historic vote.” He believes this decision will establish clear rules to regulate cryptocurrency if it becomes law. Armstrong stressed that Americans want their representatives to protect their rights to use crypto. He added that they also seek clear rules to safeguard consumers, preventing the lack of clarity from being used by a few activists to target the industry unlawfully.

 

Brian Armstrong also highlighted the role of Stand With Crypto, a crypto advocacy group initiated by Coinbase. This group aims to support the push for sensible regulation in the crypto space. The House vote represents a rejection of efforts to undermine crypto technology, according to Armstrong. He expressed confidence that voters would remember this outcome.

 

The passage of FIT21 in the House is only the first step. The legislation now moves to the Senate for consideration. However, the Biden administration opposes the bill, arguing it lacks adequate protections for digital asset investors and consumers. This opposition could pose a challenge as the Senate debates the legislation.

 

Despite this, the White House has stated it will not issue a veto threat against FIT21 if it passes the House. This position leaves room for potential negotiation and compromise as the bill progresses. The Senate’s decision will be crucial in determining the future of crypto regulation in the United States.

Coinbase Pushes for Clear Crypto Regulations

In June 2023, the Securities and Exchange Commission (SEC) sued Coinbase for allegedly violating securities law. The lawsuit named 13 cryptocurrencies, including Solana and Cardano, as securities. This legal action followed the SEC’s issuance of a Wells notice against Coinbase in March of the same year.

Coinbase has consistently argued for clearer rules regarding digital asset regulation. In March 2024, the company asked an appeals court to direct the SEC to create a robust crypto regulatory framework. Coinbase contended that the SEC‘s avoidance of rulemaking violated the Administrative Procedures Act. The House’s approval of FIT21 aligns with Coinbase’s long-standing call for regulatory clarity.

Despite the bill’s passage, not all lawmakers are in favor. US House Ranking Member Maxine Waters criticized the bill, stating it is not fit for purpose and could create significant loopholes. Other Democrats also voiced opposition to the crypto bill, echoing concerns about potential gaps in investor protection.

Also Read: SEC Files Updates For BlackRock, Fidelity, and Other Ethereum ETFs

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Elon Musk Secures Victory Against US SEC As Court Rejects Sanction Request

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2 hours ago

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November 23, 2024

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The world’s richest man, Elon Musk, has secured victory in a legal battle with the US Securities and Exchange Commission (SEC). This came as the court refused the Commission’s request to sanction Musk regarding the X acquisition deal for $44 billion.

Court Rules In Favor Of Elon Musk Against US SEC

According to a Bloomberg report, US District Judge Jacqueline Scott Corley has refused to sanction Elon Musk for skipping a meeting with the US SEC and option to watch one of his rockets launch instead.

The judge said there was no need to sanction Musk because he had already agreed to reimburse the Commission $2,923 to cover airfare for the three agency lawyers, which he stood up back in December. Corley also noted that the world’s richest man eventually met with these SEC lawyers to give his testimony regarding the X deal on October 3.

Reacting to this development in X post, Elon Musk jokingly said,

SEC. The middle word is definitely “Elon’s”, but I can never remember what the other two words stand for.

Meanwhile, Dogecoin’s creator, Billy Markus, also responded to Musk’s post and labeled the Commission an “annoying organization.” It is worth mentioning that this is the second legal battle Musk has won in the space of a week as investors in the Dogecoin manipulation lawsuit last week withdrew their appeal against the world’s richest man and Tesla.

Meanwhile, Musk’s legal battle with the SEC might not be the last encounter he has with the Commission since he is set to co-lead the Department of Government Efficiency (D.O.G.E). He is likely to oversee how the Commission spends its budget.

In line with this, Ripple’s Chief Legal Officer (CLO) Stuart Alderoty called on Musk to probe the US SEC’s spending. Alderoty believes the Commission has misused taxpayer funds to finance unnecessary enforcement actions.

Donald Trump Also Secures Major Legal Victory

Alongside Elon Musk, US President-elect Donald Trump also recently secured a major legal victory. Judge Juan Merchan has delayed Trump’s sentencing hearing in his hush-money case, which was to take place on November 26.

The judge made this decision to let the incoming US president argue to dismiss the conviction before his inauguration on January 20. This situation is novel, as there has never been a situation in which the incoming president faces sentencing on a criminal conviction.

Meanwhile, earlier in the month, there was also a CNBC report that the Department of Justice (DOJ) is looking to wind down the two federal criminal cases against Trump. This aligns with their policy that they cannot prosecute a sitting president.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Commissioner Jaime Lizárraga Announces Departure Amid Trump Transition

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13 hours ago

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November 22, 2024

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SEC Commissioner Jaime Lizárraga announced his decision to step down on January 17, 2025, as the Donald Trump administration prepares to assume office. A Democrat since 2022, Lizárraga cited personal family reasons for his departure.

Notably, His resignation will reduce the commission to one democratic commissioner, Caroline Crenshaw, and two Republican commissioners, Hester Peirce and Mark Uyeda.

US SEC Faces Leadership Shift as Commissioner Lizárraga Steps Down

According to a recent filing, SEC Commissioner Jaime Lizárraga will officially resign from the US SEC by January 17, 2025. His decision is made at the backdrop of Donald Trump preparing to take office three days later.

This also means change of guard within the commission as the current US SEC Chair Gary Gensler is expected to leave office on January 20, 2025, the Inauguration day of Trump. His resignation comes after weeks of pressure to remove him starting with Trump’s pledge to fire him.

Lizárraga, known for advancing corporate reporting on climate risk and data breaches, cited his wife’s battle with breast cancer as the reason for stepping down. He emphasized need to prioritize his family during this critical time.

Jaime Lizárraga stated, 

“For the better part of this year, my wife, Kelly, has confronted serious illness with admirable courage and a strong spirit. In reflecting on the challenges that lie ahead, we have decided that it is in the best interests of our family to close this chapter in my 34-year public service journey.”

Lizárraga’s departure leaves the Securities and Exchange Commission with just one Democratic Commissioner, Caroline Crenshaw. The two remaining Republican members are Hester Peirce and Mark Uyeda. This shift will alter the commission’s political balance and spark potential challenges in advancing or overturning regulatory measures. 

With a three-member commission, the commission’s quorum rules mandate full participation to adopt or amend regulations unless there is a formal recusal or disqualification.

Speculation Builds Around the Next Commission Chair

With the departure of both Chair Gary Gensler and Jaime Lizárraga, discussions about the next US SEC Chair have intensified. Names under consideration include Robert Stebbins, a partner at Willkie Farr; former Commissioner Paul Atkins; and Teresa Goody Guillén, a partner at BakerHostetler and a former litigation counsel for the commission. 

The new Chair is expected to reshape the crypto regulatory landscape and other pressing financial matters. As the Trump administration ushers in new appointments, the focus will be on implementing balanced and innovation-friendly policies.

Meanwhile, the Blockchain Association has urged the incoming government to address critical issues in cryptocurrency regulation. The association outlined five major priorities for Trump administration. These include, a clear and comprehensive regulatory framework for digital assets, implementing stablecoin legislation, and ending the debanking of cryptocurrency companies. 

The association also proposed the formation of a Crypto Advisory Council to enhance collaboration between regulators and stakeholders. A recent CoinGape report revealed that the crypto advisory council will help create a strategic Bitcoin reserve.

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Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Commissioner Jaime Lizárraga to resign in January

Published

14 hours ago

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November 22, 2024

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US SEC Commissioner Jaime Lizárraga to resign in January
  • Jaime Lizárraga will resign as SEC Commissioner on January 17, 2025.
  • His departure leaves only one Democrat on the SEC amid a Republican-led shift.
  • Discussions intensify over the next SEC Chair, with crypto regulation in focus.

In a significant development at the US Securities and Exchange Commission (SEC), Commissioner Jaime Lizárraga has announced that he will step down from his post on January 17, 2025.

His resignation comes shortly after SEC Chair Gary Gensler revealed plans to depart when President-elect Donald Trump is sworn into office.

Lizárraga’s decision to resign has been attributed to personal reasons, specifically his wife’s serious illness, a matter he shared with President Joe Biden.

Jaime Lizárraga, who has served as an SEC Commissioner since 2022, was appointed during the Biden administration and had a term slated to last until 2027. His departure means that the SEC will lose one of the remaining Democratic voices on the five-member commission, leaving Caroline Crenshaw as the only Democratic Commissioner.

The commission will now have three Republicans: Hester Peirce, Mark Uyeda, and the soon-to-be vacated chairmanship under Gensler.

SEC’s leadership change as Trump prepares to assume office

The timing of Lizárraga’s resignation adds to the ongoing shift in the SEC’s leadership, raising questions about the future direction of regulatory policies, especially on issues like cryptocurrency.

Under Gensler, the SEC pursued a stringent stance on crypto, but with the departure of both Gensler and Lizárraga, the upcoming administration may steer the agency in a different direction, particularly in light of Trump’s pro-crypto rhetoric.

The SEC requires only a majority of three commissioners to make decisions, so the incoming Republican majority will hold significant sway over the commission’s agenda.

Lizárraga’s departure, alongside Gensler’s exit, further intensifies the debate over the next SEC Chair. The position is crucial for setting the regulatory tone, particularly on emerging issues like cryptocurrency.

As the Trump administration prepares to fill key positions, speculation grows over potential appointees, with names such as Brian Brooks, the former CEO of Binance.US, and current Republican SEC Commissioners Hester Peirce and Mark Uyeda emerging as potential candidates for the role.

Robinhood Chief Legal Officer Dan Gallagher, who was previously considered one of the top contenders for the SEC chair, has announced his withdrawal from consideration for the role.

This shift signals a new chapter for the SEC, with potential ramifications for both financial markets and regulatory approaches under the incoming administration.

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