- Coinbase points to high remittance fees, arguing for pro-crypto regulation.
- The exchange is ramping up its efforts to influence US regulators.
- Coinbase and Ripple claim that a crypto crackdown leaves the US missing a fundamental innovation wave.
Coinbase is lobbying for pro-crypto regulation in the US, using the high fees Americans pay for remittances to support its argument.
Sponsored
US residents spend over $12 billion annually on fees just to send money to friends and family abroad, Coinbase estimated in a recent blog post. The exchange argued that these remittances are a vital lifeline for underbanked communities. Remittances from relatives in developed countries help people buy essential household goods, invest in healthcare, and fund education.
Coinbase argues that crypto could make these remittances faster and over 96% cheaper than they are today. More crypto adoption could substantially relieve the financial burden on those that rely on support for their families and friends abroad.
Coinbase Urges US Users to Lobby Congress
To help promote crypto adoption, the exchange also urged the public to talk to their representatives about crypto adoption. The exchange invited users to become advocates in its Crypto435 program.
“Policymakers in Washington DC and across the US are making decisions about the future of crypto — sign up for Crypto435 and join advocates from every 435 Congressional District to make your voice heard on pro-crypto policies,’ the company wrote.
Earlier, Coinbase CEO Brian Armstrong joined Ripple in criticizing crypto regulations in the US. He said that the Securities and Exchange Commission’s crackdown on crypto could drive key innovations out of the US.
Sponsored
In 2022, Coinbase was one of many crypto exchanges that ramped up its efforts in crypto lobbying. The exchange spent over $3 million on lobbying efforts in Washington and hired 36 professional lobbyists.
On the Flipside
- Coinbase stands to gain a lot from regulation favorable to crypto. The company also faces an existential threat in case of a crypto crackdown in the US.
- US regulators are cracking down on centralized entities in crypto after the disastrous collapse of the crypto exchange FTX.
Why You Should Care
Coinbase’s lobbying efforts could potentially sway US politicians into a more favorable position. This is critical, especially since the regulatory winds are turning against crypto.
Read more about Coinbase’s take on SEC’s regulation:
Coinbase’s Brian Armstrong Joins Ripple CEO in Chastising SEC’s Approach to Crypto
Read more about Binance’s latest efforts to promote crypto self-custody:
Binance’s Trust Wallet Launches In-App Crypto to Fiat Withdrawals
