Givepact Joins Coinbase and 45 Crypto Companies on Capitol Hill to #StandWithCrypto

On Sept. 27, Coinbase, the largest crypto exchange in America, organized a #StandwithCrypto day on Capitol Hill in coalition with 45 crypto founders, including Givepact CEO Alicia Maule. The founders, who employ 1,500 people, came from across the country to speak with Congress about the importance of pushing clear regulations to help fuel the economy. There are 52M Americans who own crypto currency, yet the federal government has no regulations in place to guide the industry, putting the growing number of consumers at risk.

“Stand with Crypto is here to tell people that 52 million Americans have now used crypto,” said Brian Armstrong, CEO of Coinbase.

“That's 3x the number that own electric vehicles. It's more than hold Union cards in the United States. It's a massive constituency. And they're frankly a little unhappy with the U.S. because the U.S. is lagging behind.”

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Among the bills in Congress is the bi-partisan Financial Innovation and Technology for the 21st Century Act (Fit21), which passed out of The House Agriculture Committee in July and addresses the pressing need for regulatory clarity. With enough support from constituents like you, the bill has a chance. You can call or email your lawmakers, in less than one minute, to express your support.

The need is urgent as the Security and Exchange Commission Chairman Gary Gensler has taken an aggressive approach to suing America’s largest crypto companies like Coinbase and Ripple, making for a hostile environment for thousands of entrepreneurs within the crypto ecosystem. However, in a victory for the industry, a judge ruled that Ripple’s XRP token cannot be classified as a security.

The #StandwithCrypto day started with Mr. Gensler testifying before a largely frustrated Financial Services Committee hearing led by Chairman Rep. Patrick McHenry, a champion of crypto, who pointed to the SECs losing streak in the courts and Mr. Gensler's “crusade against the digital assets ecosystem and unresponsiveness to Congress.” Rep. McHenry also pushed Mr. Gensler to agree that Bitcoin is not a security, although he would not classify it as a commodity. 

Numerous companies, such as BlackRock, Bitwise, WisdomTree, and VanEck, have submitted requests to the SEC seeking approval for spot Bitcoin ETFs. However, the regulatory authority has postponed its decision until October. Should these ETFs gain approval, they would offer investors a means to participate in the Bitcoin market without requiring direct ownership.

In a bipartisan effort, Reps Ritchie Torres (D-NY), Mike Flood (R-NE), Tom Emmer (R-MN), and Wiley Nickel (D-NC), from the committee also sent Mr. Gensler a letter to “to ensure the [SEC] does not continue to discriminate against spot bitcoin [ETFs].” 

Historically, the SEC has maintained that endorsing a spot Bitcoin ETF is challenging due to concerns regarding the cryptocurrency market's overall maturity and regulation. The agency has expressed reservations, citing the need for a more robust framework to guard against potential instances of fraud and market manipulation.

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During meetings held throughout the day, lawmakers were able to hear directly from crypto leaders representing 15 states, who believe in the power of blockchain to simplify and secure payments, grow the economy, and help the U.S. remain a leader in innovation; encouraging action on pending crypto legislation. 

Highlights from the day