Coinbase, a well-known cryptocurrency exchange, has made some significant changes to its Advisory Council by appointing four prominent individuals from political and financial backgrounds. The new members include Former Senator Kyrsten Sinema, Chris LaCivita (Trump’s 2024 co-campaign manager), former New York Federal Reserve President Bill Dudley, and former Inter-American Development Bank President Luis Alberto Moreno as reported by Wu Blockchain.
Strategic Objective Behind the Appointments
The SEC has charged Coinbase for operating as an unregistered securities exchange, broker and clearing agency, alleging that the company facilitated the operations without proper registration. Since the new members of the advisory board come from political as well as financial background, with them they bring a ton of experience and insights, which makes them perfect candidates for Coinbase to address the ongoing regulatory challenges. With the current appointment, Coinbase is also sending across a message to its users that they are doing everything in their power to be compliant with the regulations and provide safe and secure environment to its users.
Industry Wide Political Engagement
Apart from enhancing his advisory board, Coinbase has also collaborated with other exchanges and companies like Kraken and Ripple for raising around $78 million through the crypto political action committee (PAC) Fairshake. The main aim of this collaboration was to support political candidates in 2024 elections who advocated strongly for crypto-friendly regulations.
Implications for the Cryptocurrency Sector
The moves made by the exchange indicate the efforts that are being put in to shape a regulatory environment that is optimum for the growth of the crypto industry and facilitates mass adoption of these digital assets. By having such powerful and experienced individuals on his side, Coinbase shall promote policies that will allow innovation within the sector that are again in compliance with the regulatory guidelines.
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