Coinbase CEO set to meet House Democrats while experts believe Earn is at risk of being defined as a security


  • Coinbase CEO Brian Armstrong will meet House Democrats early on Wednesday to speak on digital asset legislation. 
  • Experts have expressed their concerns and believe Earn is particularly vulnerable to being defined as a security. 
  • If any or all of the ten states that initiated proceedings against COIN affirm that the program facilitates securities offerings, it would support the SEC’s accusations.

The US financial regulator, the Securities and Exchange Commission (SEC), accused Coinbase of unregistered securities offering. Since then, the exchange has been battling the SEC’s allegations. Coinbase CEO, Brian Armstrong, is set to meet with House Democrats on Wednesday morning to discuss cryptocurrency regulation and related issues like tax, national security, privacy and climate.

Also read: Uniswap price gears up for rally with these five bullish catalysts

Coinbase CEO set to speak to lawmakers privately

Coinbase Inc. CEO Brian Armstrong has planned a meeting with House Democrats behind closed doors on Wednesday morning, according to a recent Coindesk report. The executive will speak privately with lawmakers from the New Democrat Coalition about digital asset legislation while the exchange faces a SEC lawsuit.

The Coinbase executive has led a campaign for clearer rules on cryptocurrencies and urged lawmakers for clear guidance on how to register with regulators. While Armstrong works on plans to speak with lawmakers, experts at the investment bank Berenberg believe “Earn”, Coinbase's securitized staking program for retail customers, is at risk of being declared a security.

Experts believe Coinbase’s Earn could be declared as a security

Experts at the investment bank Berenberg noted that “staking” was a topic of discussion last Thursday during the first pre-motion hearing in the SEC’s lawsuit against the exchange. Analysts argue that if any or all of the 10 states that initiated proceedings against COIN citing an illegal staking program, it could strengthen the SEC’s arguments against the exchange.


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