Coinbase, the largest U.S. cryptocurrency exchange, has launched a grassroots advocacy campaign to advance legislation that will provide regulatory clarity for the crypto industry. This move underscores the crypto industry’s push in Washington as it sees an opportunity to advance legislation that would help rein in the U.S. Securities and Exchange Commission, which has been cracking down on the industry.

Coinbase is launching a comprehensive paid media campaign which includes advertisements in Washington, DC and calls-to-action on its own platform urging crypto users to contact their members of Congress to ask them to pass crypto legislation. The company is also organizing a so-called “fly-in” on Sept. 27 when it will bring executives and developers from about 35 crypto companies to meet staff and lawmakers on Capitol Hill.

Kara Calvert, head of U.S. policy at Coinbase, said, "Crypto is just so much bigger than Coinbase, and that I think is what’s going to be really powerful about the fly-in." Coinbase estimates there are 52 million crypto owners in the U.S.

The Legislation

A congressional committee in July advanced a crypto bill that would define when a cryptocurrency is a security or a commodity. The crypto community wants that bill to go to a full vote in the U.S. House of Representatives.

Coinbase has led industry advocacy efforts in recent years, spending $3.39M on lobbying in the 2022 election cycle (the most of any crypto company by a wide margin). Last month, Coinbase started a non-profit, Stand With Crypto, to advance pro-crypto policy. That group has recently held events in Ohio, Nevada, Georgia and Montana that have “tested the capacity to organize crypto advocates,” according to Coinbase.

Regulatory Challenges

The Securities and Exchange Commission is suing Coinbase for allegedly selling unregistered securities, which the company denies. Despite the ongoing lawsuit, Coinbase secured approval of the National Futures Association to offer cryptocurrency futures to retail customers in the U.S. "This is a critical milestone that reaffirms our commitment to operate a regulated and compliant business," Coinbase said at the time.

Impact of the Campaign

The campaign launched by Coinbase represents an important moment for the crypto community and a significant step towards advancing legislation that provides clarity for the industry. It also highlights the growing influence of cryptocurrency companies in policy-making circles.