"Coinbase Fortifies DC Ties, SEC's Crypto Woes Mount"

Coinbase, a leading US-based cryptocurrency exchange, has bolstered its ties to Washington by adding four prominent figures to its advisory board. The new members include former US Senator Kyrsten Sinema, Chris LaCivita, co-campaign manager for President Donald Trump’s re-election bid, Bill Dudley, the former president of the Federal Reserve Bank of New York, and Luis Alberto Moreno, an expert in global development and international finance.

Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, told Reuters that this move suggests Coinbase is positioning itself to have direct influence on policy discussions by aligning with individuals who have deep ties to both the Trump camp and traditional financial institutions.

Favorable regulatory and legal tailwinds have recently boosted Coinbase. Trump’s nominations for key roles in US regulators favor the crypto industry in the country. In the US Securities and Exchange Commission (SEC), the US president nominated pro-crypto Paul Atkins to replace former chair Gary Gensler. Until Atkins can take office in June 2026, pro-crypto Commissioner Hester Peirce will continue to lead the charge.

On his first day at the office, Commissioner Uyeda established a crypto task force to provide regulatory clarity for companies and stop regulation by enforcement efforts. Trump also nominated Pham for the Commodity Futures Trading Commission (CFTC), who will start discussing crypto via recently announced public roundtables.

The US president has signed an executive order establishing a crypto working group, prohibiting federal agencies from pursuing a central bank digital currency and allowing the evaluation and potential establishment of a national digital assets stockpile. In addition to these changes, the executive order created the first role focused on crypto and artificial intelligence regulation, with David Sack taking the spot as the “White House AI & Crypto Czar.”

On Jan. 13, Coinbase scored significant legal victories in its battle with the SEC. The US Court of Appeals for the Third Circuit acknowledged that the regulator’s reasoning for not providing clear rules was “arbitrary and capricious.” Although the ruling does not require the SEC to provide a legal framework, it does bind the regulator to explain its refusal to do so properly.

On Jan. 7, the United States District Court Southern District of New York granted the exchange an interlocutory appeal so Coinbase could appeal the SEC’s accusations of offering unregistered securities