Coinbase Files SEC Lawsuit, Partners Stripe, Sees Former Advisor Join Biden Campaign

It's been a busy week for Coinbase. Not only has the listed cryptocurrency exchange formed a partnership with Stripe but Coinbase has also found the time to file a lawsuit against the mighty US Securities and Exchange Commission (SEC). Additionally, a former Coinbase advisor has joined Joe Biden’s 2024 presidential campaign as a senior adviser.

Vs SEC Again

No love has been lost between Coinbase and the SEC again. Just over a year ago, the US regulator filed a lawsuit against Coinbase for operating as an "unregistered securities exchange, broker, and clearing agency."

Coinbase CEO Brian Armstrong hit back at the lawsuit, stating it was a reflection of the SEC's "misguided and conscious refusal" to offer clarity to the crypto industry.

Armstrong even went as far as to say that Coinbase is considering a USA exit on account of the SEC. "I think if a number of years go by where we don’t see regulatory clarity emerge in the US, we may have to consider investing more in other regions of the world," he said.

Fast forward one year and Coinbase is on the offensive. In a recent filing with the US Court of Appeals, crypto exchange Coinbase lashed out at the SEC, claiming the regulator "is serious about the destruction of digital assets."

Coinbase's chief legal officer slammed the SEC for "choking" the industry.

The SEC cannot claim broad jurisdiction over a new industry without proper authorization from Congress and without making clear rules. 2/4 pic.twitter.com/KlpfWKV1oq
— paulgrewal.eth (@iampaulgrewal) May 31, 2024

Now, Coinbase has filed a lawsuit against the SEC and the Federal Deposit Insurance Corp (FDIC), accusing the regulator of withholding information about previous investigations into the cryptocurrency market and trying to restrict the crypto industry’s access to banking services.

The SEC, FDIC, and the Federal Reserve Board are being accused of using tools to stifle the crypto industry for two years.

"Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry," Grewal said on X. "Today we demand better from our financial regulators. We appreciate the Court’s attention to these important issues and look forward to sharing updates in the future."

Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. @SECGov has claimed sweeping authority, but refuses to provide any rules, let alone consistent or coherent ones. While @FDICgov pressured financial institutions to cut…
— paulgrewal.eth (@iampaulgrewal) June 27, 2024

New Stripes

Coinbase is teaming up with payments provider, Stripe, to increase on-chain adoption and to bring more efficiency to financial infrastructures.

Through the partnership, Stripe will add USDC on Base to their crypto payout products, making Stripe platforms faster, and offering cheaper payment transfers to more than 150 countries.

USDC on Base will also be added to Stripe's fiat-to-crypto onramp, which will enable US customers to convert other fiat to crypto faster.

Meanwhile, Coinbase will add Stripe's fiat-to-crypto onramp to Coinbase Wallet to enable users to buy crypto with credit cards and Apple Pay.

"We’re excited to keep building together towards our shared goal of improving the financial system for people and businesses around the world," Coinbase said in an announcement.

Biden Bottoms Up

Former Coinbase global advisor, Keisha Lance Bottoms, has joined Joe Biden's campaign for the 2024 Presidential election as a senior advisor.

Bottoms, who also served as the Mayor of Atlanta from 2018 to 2022, joined Coinbase's advisory council in April 2024.

“We often say that each election is the most important election of our lifetime," Bottoms said. "This one absolutely is. We spent four years tormented by the policies and erratic behavior of Donald Trump, and another four years of promised retribution to his political enemies is just the tip of the iceberg of the chaos that he will once again bring to America.”

“From the moment President Biden stepped foot in the White House four years ago, he put people over politics, delivering historic progress. From millions of new jobs created, to billions forgiven in student loan debt, directly working to close the racial wealth gap, the Biden-Harris administration has put the communities that are far too often left behind, at the forefront.

Biden has been losing crypto support after vetoing a House Joint Resolution that would have repealed the SEC Staff Accounting Bulletin 121, or SAB121. The 121 rule requires companies to list crypto assets on their balance sheets, increasing the expense for financial institutions to deal with cryptocurrencies.

The Senate voted 60-38 to withdraw the policy but Biden said in a statement, "By virtue of invoking the Congressional Review Act, this Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues."

"This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices."

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