Coinbase Bolsters DC Ties Amid Favorable Crypto Regulatory Winds
1min read Coinbase, a leading US-based cryptocurrency exchange, has bolstered its ties to Washington by adding four high-profile figures to its advisory council. 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.
This move by Coinbase suggests a strategic effort to influence policy discussions by aligning with individuals who have deep ties to both the Trump camp and traditional financial institutions. The addition of these advisors comes at a time when the crypto industry is experiencing favorable regulatory and legal tailwinds in the US.
The Trump administration has nominated pro-crypto individuals for key roles in US regulators, including Paul Atkins to replace former SEC chair Gary Gensler. In the meantime, pro-crypto Commissioner Hester Peirce has been leading the charge. On his first day, new SEC Chair Mark Uyeda established a crypto task force to provide regulatory clarity and stop regulation by enforcement efforts.
Trump has also nominated Kristin Johnson to the Commodity Futures Trading Commission (CFTC), who will discuss crypto via recently announced public roundtables. Additionally, the president 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. The order also created the first role focused on crypto and artificial intelligence regulation, with David Sack taking the position of the "White House AI & Crypto Czar."
Coinbase has also 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. Additionally, the United States District Court Southern District of New York granted Coinbase an interlocutory appeal, allowing the exchange to appeal the SEC's accusations to the Second Circuit of the US Court of Appeals.
