Brian Armstrong will meet with House Democrats from the New Democrat Coalition to discuss crypto regulation and related topics.
This closed-door meeting comes as Coinbase is currently undergoing a lawsuit from the United States Securities and Exchange Commission (SEC) and seeks clarity on exchange regulations.
Even with the lawsuit, Coinbase’s shares grew by 24% last Thursday after the court judgment on Ripple v. SEC’s suit, which favored Ripple (XRP).
Coinbase Boss to Meet with Democrats on Wednesday
The CEO and Co-founder of Coinbase (COIN), Brian Armstrong, is scheduled to meet with Democrats from the US House of Representatives.
This meeting will take place on Wednesday morning, as reported by Bloomberg on Monday, July 17. The report also referenced Democratic aides familiar with the scheme.
The closed-door meeting will be with members of the New Democratic Coalition, an association of more than 100 Democrats claiming to be committed to pro-economic advancement, pro-innovation, and economically responsible rules, as written on the caucus’s official website.
Furthermore, as stated in the report, the meeting will be regarding digital currency legislation and related topics such as privacy, climate, tax, and national security.
Recently, US legislators from the House and Senate have emerged with different bills to clarify crypto regulation. However, with Congress being divided in their opinion on this regulation, whether such attempts will be fruitful remains a mystery.
Coinbase Faces Prosecution from the US SEC
On June 6, the Securities and Exchange Commission filed a case against America’s largest crypto exchange for breaking federal securities law.
On the exchange, the authority also listed several crypto tokens, like SOL, ADA, FIL, MATIC, and SAND, as securities. Thus, the SEC charged Coinbase with selling unregistered securities to customers.
Denying the SEC’s accusations, Coinbase filed a motion for the case to be dismissed on June 29, tagging the charge as “an extravagant abuse of process.”
Meanwhile, Coinbase’s (COIN) shares grew by over 24% last Thursday to trade above $100 for the first time since early last year.
This sudden price surge came from Ripple’s partial win against the SEC concerning the classification of the sales of XRP tokens. The US District Judge Torres ruled that selling XRP tokens to retail investors was not a security.
But the judge noted that the sale of XRP tokens to institutional investors classified it as a security. Following the ruling, Coinbase and other notable crypto exchanges in the US, like Binance, Huobi, Gemini, and Crypto.com, relisted the XRP token on their platforms.
With more traders able to access and trade XRP and other assets on Coinbase, the exchange saw a growth in its shares.
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Nick Dunn
Crypto Journalist
