The private meeting aims to discuss various areas, including tax regulations, national security, privacy, and environmental considerations related to cryptocurrencies, as well as general concerns regarding digital asset legislation. This development occurs in the backdrop of the ongoing legal battle between Coinbase and the SEC. The agency has accused Coinbase of violating regulations by not registering as a securities exchange, a claim that Coinbase strongly disputes and is actively seeking dismissal of. Coinbase argues that the actions taken by the SEC represent an undisclosed change in its interpretation of its own authority, characterizing it as an abuse of power. CEO Armstrong has long been an advocate for clear guidelines regarding digital assets, emphasizing the need for congressional legislation to address inconsistencies between the SEC and the CFTC. Coinbase has proposed two bills to lawmakers that would provide explicit directions on how crypto exchanges should register with regulators. These efforts aim to close authority gaps between the CFTC and SEC and strengthen financial and technological innovation in the U.S. Armstrong calling for clearer regulations aligns with the concerns of the broader crypto industry, which has faced increased scrutiny from the SEC. The Blockchain Association has criticized the agency for exhibiting bias against cryptocurrencies other than Bitcoin, asserting that the SEC considers all digital assets as securities as was showcased in the XRP lawsuit.
