Coinbase CEO Brian Armstrong celebrates the House’s victory in regulating Clear Crypto

The House of Representatives adopted it Act on financial innovations and technologies for the 21st century (FIT21), which represents a significant step in the regulation of cryptocurrencies. CEO of Coinbase Brian Armstrong welcomed this victory, emphasizing the importance of clear and sound cryptocurrency rules. With 71 Democrats voting in favor, exceeding expectations, the legislation now heads to the Senate.

Brian Armstrong celebrates historic FIT21 House vote

According to Armstrong, the House’s approval of FIT21 is a “historic vote.” He believes this decision will establish clear rules to govern cryptocurrency if it becomes law. Armstrong emphasized that Americans want their representatives to protect their rights to use cryptocurrencies. He added that they are also pushing for clear rules to protect consumers, preventing a few activists from taking advantage of the lack of clarity to illegally attack the industry.

Brian Armstrong also highlighted the role of Stand With Crypto, a cryptocurrency advocacy group initiated by Coinbase. This group aims to support efforts for reasonable regulation in the crypto space. According to Armstrong, the vote in the House of Representatives represents a rejection of efforts to weaken cryptographic technology. He expressed confidence that voters would remember this result.

Transition FIT21 in this House, this is only the first step. The bill will now go to the Senate for consideration. However, the Biden administration opposes the bill, arguing that it lacks adequate protections for investors and consumers in digital assets. This opposition may pose a challenge during the debate on the bill in the Senate.

Still, the White House said it would not issue a veto threat against FIT21 if it passes the House. This position leaves room for potential negotiation and compromise as work on the bill progresses. The Senate’s decision will be crucial in determining the future of cryptocurrency regulation in the United States.

Coinbase pushes for clear cryptocurrency regulations

In June 2023, the Securities and Exchange Commission (SEC) sued Coinbase for allegedly violating securities laws. The lawsuit lists 13 cryptocurrencies, including Solana and Cardano as securities. This legal action followed the SEC’s release of its Wells v. Coinbase notice in March of the same year.

Coinbase has consistently advocated for clearer rules regarding the regulation of digital assets. In March 2024, the company asked the appeals court to order the SEC to create a robust regulatory framework for cryptocurrencies. Coinbase maintained that KNOTHer avoidance of legislating was a violation of the Administrative Procedure Act. The Board’s approval of FIT21 is in line with Coinbase’s long-standing call for regulatory transparency.

Despite the adoption of the bill, not all parliamentarians are in favor of its adoption. U.S. House of Representatives ranking member Maxine Waters criticized the bill, saying it was not fit for purpose and could create significant loopholes. Other Democrats have also expressed opposition to the cryptocurrency bill, echoing concerns about potential gaps in investor protections.

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