****

President-Elect Donald Trump is set to convene with Coinbase CEO Brian Armstrong to deliberate on potential appointments for the incoming administration, as reported by the Wall Street Journal on November 18. This meeting marks their first encounter since the day of the election.

During his campaign, Trump proposed the establishment of a presidential advisory commission dedicated to bitcoin and cryptocurrencies, aimed at creating transparent regulatory guidance in this evolving sector. Coinbase CEO Armstrong has been vocal about his support for Hester Peirce, a former Trump SEC Commissioner, as the ideal candidate to lead the Securities and Exchange Commission (SEC).

The discussions come at a pivotal time for Coinbase, which recently pressed the SEC to formulate clear regulations for digital assets, following a federal appeals court case in September. Coinbase had previously sued the SEC to compel the regulator to provide clarity on when digital assets qualify as securities and sought a market structure framework compatible with the cryptocurrency industry. The SEC maintained that existing regulations are sufficient.

Additionally, Coinbase has expressed its commitment to maintaining high policy expenditures through the upcoming U.S. presidential election and beyond, as it navigates regulatory challenges both domestically and internationally. At a conference in September, Coinbase CFO Alesia Haas highlighted the importance of regulatory clarity and the company's willingness to collaborate with any administration or legislature working towards comprehensive crypto legislation.

The influence of the cryptocurrency sector on the U.S. political landscape is evident, with political action committees (PACs) backed by Coinbase and Armstrong emerging as one of the top three fundraisers in the 2024 election season. These crypto super PACs are mobilizing funds in an attempt to shape policy at a time when the industry faces heightened scrutiny from both lawmakers and regulators.

During an event in June, Coinbase’s Chief Legal Officer Paul Grewel reiterated the company's pursuit of a legislative remedy, amidst its ongoing legal battle with the SEC. This underscores Coinbase’s strategic efforts to secure a regulatory environment that fosters innovation and provides clarity for digital assets.