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Crypto Seeks to Make Mark on U.S. Elections During ‘Super Tuesday’

The long list of primary elections Tuesday across 15 U.S. states will steer the fates of many seats in Congress and further solidifies the presidential showdown later this year, but Coinbase CEO Brian Armstrong said it’s also a “chance to send a message” to federal politicians who’ve declined to come up with crypto policies.

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Coinbase Custody Accounts For 90% Of All Bitcoin ETFs – Details

Coinbase Custody reportedly now holds over 90% of all Bitcoin ETFs in the United States. This development was revealed by the crypto exchange’s CEO, Brian Armstrong, while appraising the company’s performance in the fourth quarter (Q4) of 2023.

Coinbase Emerges As Major Player In Bitcoin ETF Market

In an X post on February 16, Brian Armstrong shared specific highlights of Coinbase’s achievement in Q4 2023. In particular, He noted that the American crypto exchange has played a crucial part in facilitating the adoption of cryptocurrencies by traditional financial firms (TradFi).

A major part of this adoption is the Bitcoin ETF market which is worth $37 billion, ranking as the second largest commodity ETF market after Gold. Armstrong noted that Coinbase has played a significant role in this development, serving as custodian for 90% of the investment funds in the Bitcoin ETF market.

For context, a custodian is a regulated financial institution that holds customers’ securities and assets, providing protection against any form of loss or theft. Notably, Coinbase is listed as the custodian for eight of the 11 recently launched Bitcoin spot ETFs. These include BlackRock’s IBIT, Ark Invest’s ARKB, Bitwise’s BITB, and Grayscale’s GBTC, among others.

These statistics indicate that Coinbase is well placed to record larger milestones as the top traditional financial institutions are tipped to finally invest in Bitcoin ETFs, especially upon the proven success and stability of the Bitcoin spot ETFs.

According to Armstrong, other notable Coinbase achievements in Q4 2024 include the launch of the exchange’s international wing, and the layer-2 blockchain solution Base. The crypto exchange also claimed to slash its annual costs by 45% while generating a total income of $3.1 billion.

Looking Forward To 2024

In retrospect to 2024, Armstrong stated that Coinbase will maintain focus on its international expansion and new derivatives products. In addition, they will aim to promote the adoption of crypto payments by transforming the Coinbase wallet into a super app. 

Finally, the exchange CEO states that Coinbase will continue to advocate for a clear regulatory framework applicable to the crypto space. Armstrong says that Coinbase is committed to this course and is willing to explore all means, including legal processes as well as engaging the federal legislators.

CoinbaseCOIN trading at $180.28 on the trading chart | Source: COIN chart on Tradingview.com

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U.S. House Approves Major Crypto Bill, Pushes For A Regulatory Framework

A noteworthy development has occurred in regulating the United States’ crypto space as a House Committee has approved a bill to bring clarity into the industry. 

On July 26, the U.S House Financial Services Committee approved the Financial Innovation and Technology Act for the 21st Century Act, popularly known as FIT21.

After a long deliberation, the House Committee greenlighted the FIT21 bill with a 35-15 voting result. 

It is worth stating that the FIT21 has been garnering attention, with Coinbase CEO Brian Armstrong taking to Twitter to urge crypto users in the United States to actively push for this bill’s approval.

Although Armstrong believed the bill would likely be modified as it passes the complete legislative process, its approval by the House Committee was vital to safeguard the crypto space, “American innovation and national security.”

The FIT21 Act – A  Landmark Legislation For U.S. Crypto Space? 

The Financial Innovation and Technology for the 21st Act was recently introduced to the House on July 20. 

In the Act’s introductory statements, Representative French Hill, who serves as Chairman of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion, referred to the bill as a “landmark legislation” critical to creating an efficient regulatory framework to safeguard crypto users’ interests.

The U.S. House Representative further stated that this bill would have prevented the FTX crisis and provided much-needed clarity in crypto. Hill said:

This legislation would not only have prevented FTX from stealing billions of customer funds, but also establishes robust consumer protections and clear rules of the road for market participants. 

In addition, the FIT21 Act will enhance cooperation between the two financial regulators trying to assume control of the U.S. crypto market. U.S. Representative Dusty Johnson, another sponsor of the bill, emphasized this motion saying:

The crypto industry wants clarity and our collaborative bill gives both the CFTC and SEC a seat at the table. Our bill establishes clear principles to ensure financial security and certainty as digital asset developers continue to innovate.

Related Reading: SEC Potential Appeal To Yield Little Effect On XRP, Crypto Lawyer Says

U.S. Congress Finally Stepping Up Crypto Regulations

The call for a regulatory framework in the U.S. crypto space has been on for quite some time, especially with multiple clampdowns by the SEC on various crypto exchanges and businesses in 2023. 

U.S. Patrick McHenry highlighted this situation, stating the United States is “falling behind” other nations regarding digital asset regulation. 

However, the introduction of the FTI21 Act, along with other bills such as the Blockchain Regulatory Act, the Digital Asset Market Structure Proposal, and the “Lummis-Gillibrand” Bill, suggests that the United States government may be ramping up its regulatory efforts in the crypto landscape.