Coinbase cryptocurrency exchange withdrew from the Blockchain Association advocacy group due to the fact that Binance.US joined it.
Coinbase management believes that the decision to include Binance.US as a member of the Blockchain Association is contrary to the mission of this organization. Coinbase called such a step ill-considered, and it allegedly could cause “irreparable damage” to the credibility of the Association. At the same time, the exchange did not indicate what the damage could be and why Binance does not deserve membership in the Association.
The real reason for Coinbase’s displeasure is that Binance’s US arm is competing with it for cryptocurrency traders in the US. In an address to the top manager of the Blockchain Association, Kristin Smith, Coinbase executives indicated that the Association attracts members without meeting “certain criteria.”
Meanwhile, the Blockchain Association has expressed regret at Coinbase’s exit from the organization during such a difficult time for the industry. The human rights group noted that it complies with the requirements for the selection of participants. The decision to include Binance.US received a majority vote on the Association’s board of directors. Binance.US management declined to comment on the situation.
According to a Twitter post from the Blockchain Association, in order to accelerate the development of the blockchain industry and the development of cryptocurrency legislation, it is necessary to team up with all major companies, investors and innovative projects from the cryptocurrency industry. This will facilitate the introduction of technological innovation in various industries, including the financial sector, as well as facilitate the creation of open blockchain-based networks.
For two years, the organization has already achieved some success. This month, an advocacy group called on the Office of the Comptroller of the Currency (OCC) to allow banks to make payments and accept deposits in stablecoins pegged to the US dollar. In addition, the group is working on the adoption of the Token Taxonomy Act and the Digital Taxonomy Act, taking cryptocurrencies out of the definition of securities.
As a reminder, the Blockchain Association previously supported Kik and Telegram messengers in litigation initiated by the US Securities and Exchange Commission (SEC).
