Coinbase Seeks Crypto Regulation Clarity in Capitol Hill Testimony

Coinbase is sending its chief legal officer to present its case on why clarity is needed for crypto regulations. Meanwhile, the Securities and Exchange Commission continues to attack the industry relentlessly.

On June 5, Coinbase CLO Paul Grewal revealed that he would be testifying on Capitol Hill before the House Committee on Agriculture.

The testimony on June 6 will be on the need for “clear crypto rules and the Digital Asset Market Structure Discussion Draft,” he said.

Coinbase Crypto Regulations and a Plea for Clarity

The Draft was released by House Agriculture Committee Chairman Glen Thompson and Financial Services Committee Chairman Patrick McHenry last week.

Grewal outlined the testimony details in a company blog. Furthermore, he reiterated the argument that the United States is falling behind in terms of fintech innovation.

“We cannot afford to ignore crypto while other markets take advantage of our absence, developing rules and regulations that enable the industry to thrive and risk sending jobs, investment, and technological leadership overseas.”

The Coinbase executive also pointed out that legislation helps “good guys innovate and ensures bad guys are held accountable.” Currently, the SEC is treating everyone as a bad guy and punishing them, resulting in investor losses – exactly the thing it is trying to prevent.

He echoed sentiment previously made by Coinbase CEO Brian Armstrong that crypto is diverse and has many applications. These can include more reliable international payments, digital IDs, and healthcare records on the blockchain.

Grewal also wants to discuss the Digital Asset Market Structure Discussion Draft. He will advise Congress that there is a need to classify crypto so that the two agencies (SEC and CFTC) are not both trying to regulate by enforcement.

Crypto Bill a Strong Foundation

The bill “offers a strong foundation on which to build a workable and balanced regulatory framework,” he added.

Grewal concluded that both sides need to work together to ensure what is best for America and its consumers.

“Coinbase strongly encourages lawmakers from both sides of the aisle to work together and act as soon as possible to continue moving the bill through the legislative process.”

The testimony comes at a critical time when regulators are gunning for crypto firms. Moreover, many of them are striving hard for dialogue and compliance in muddied waters with no clear guidelines.

Following the SEC’s Binance lawsuit, Coinbase stock tanked 9% on the day in a fall to $58.26 in after-hours trading. Meanwhile, crypto markets are down 3.6% on the day, with altcoins suffering the most.