Coinbase News: Crypto Firms Call for Clarity on Money Transmitter Rules Amid Regulatory Concerns

In a significant development in the cryptocurrency regulatory landscape, a coalition of over 30 crypto firms has taken a bold step by urging Congress to address the Department of Justice’s (DOJ) interpretation of money transmitter laws. The move comes amid growing concerns about potential regulatory uncertainty that could stifle innovation and growth in the digital asset space.

30 Crypto Firms Urge Congress for Clarity on Money Transmitter Rules

A group of over 30 crypto firms, led by the DeFi Education Fund, have sent a letter to key lawmakers urging Congress to address the Department of Justice’s interpretation of money transmitter laws. The firms argue that the DOJ’s stance, first introduced in an August 2023 indictment, deviates from existing Treasury Department guidance and could expose non-custodial software developers to criminal liability. The signatories, which include major players like Coinbase, Paradigm, and Kraken, claim that the interpretation disregards the Financial Crimes Enforcement Network’s 2019 guidelines, which state that developers who do not take custody of user funds are not considered money transmitters.

Coinbase Warns Canada Risks Losing Global Economic Position Without Crypto Reforms

As Canada prepares to vote, Coinbase is urging the next government to take crypto seriously. Lucas Matheson, Coinbase’s Canadian country director, warned that without clear regulations, Canada risks falling behind in the crypto industry and becoming less integrated into the global digital economy. With an estimated five million Canadians already holding crypto, 86% of Canadians agree their financial system could use an update. Many feel the system is not fair for everyone (80%) and is out of touch (76%).