Coinbase Reportedly to Propose Crypto Framework to U.S. Officials

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Coinbase

plans to publicly roll out a pitch on a proposed regulatory framework for cryptocurrencies to federal officials in the coming days, according to a report. 

The crypto exchange plans to argue about the definition of what a security is within the United States, CoinDesk reported, citing sources familiar with the regulatory discussions. 

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Coinbase

(ticker: COIN) spokesperson declined to comment to CoinDesk about the report.

The report follows news from last week when Coinbase said it was cancelling plans for its “Lend” platform after the Securities and Exchange Commission threatened to sue the company over the product.

Coinbase promoted Lend as a means for investors to earn interest on their crypto holdings. But the Securities and Exchange Commission warned that it would sue Coinbase if it went ahead with the plan.

Separately, Cathie Wood’s ARK Innovation ETF (ARKK) purchased 65,612 shares of Coinbase on Tuesday. ARKK holds 4,254,756 shares of Coinbase in its portfolio with a market value of more than $1.01 billion.

Shares of Coinbase were rising 0.49% in trading Wednesday to $239.62.

Bitcoin, meanwhile, was falling for a third day, down 1.97% to $42,265. The world’s largest cryptocurrency has been swept up in a market that has turned risk-averse, brought about partly by the potential failure of China Evergrande Group, the world’s most indebted property developer.

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