Why It Matters

Congress is rapidly advancing comprehensive digital asset regulation, and Coinbase Inc. faces a critical challenge: ensuring the regulatory framework favors institutional adoption over enforcement-heavy approaches. The core issue is jurisdictional clarity between SEC and CFTC authority. The legislative solution is taking shape through H.R. 3633 – Digital Asset Market Clarity Act, which establishes CFTC authority over digital commodities and registration requirements for intermediaries.

By hiring Avoq LLC—a firm with relationships spanning Goldman Sachs and Meta—Coinbase is building a coalition-spanning strategy to frame digital assets as financial and technological innovation.

By the Numbers

Coinbase is escalating its Washington presence with a new $90,000 engagement with Avoq LLC, expanding its already extensive external lobbying apparatus alongside $14.51 million in in-house lobbying since 2015.

The company maintains relationships with multiple specialized firms: Franklin Square Group LLC ($2.18 million across 35 disclosures), Rich Feuer Anderson ($1.15 million), and Porterfield, Fettig & Sears LLC ($770,000).

This Q3 2025 filing adds veteran Democratic lobbyist Steven A. Elmendorf, whose 16-year relationship with Goldman Sachs on Dodd-Frank implementation provides experience navigating foundational financial regulation—directly relevant to establishing digital asset market structure.

The Agenda

Coinbase is lobbying on digital asset regulatory frameworks, specifically targeting H.R.3633, the Digital Asset Market Clarity Act, which would establish jurisdictional lines between SEC and CFTC and create a decentralization process allowing assets to transition from securities to commodities.

The company’s broad agenda includes:

  • Regulatory Clarity: Defining which digital assets are securities versus commodities
  • SEC/CFTC Jurisdiction: Establishing clear regulatory roles
  • Tax Treatment: Addressing taxation and broker reporting requirements
  • Stablecoin Regulation: Supporting federal frameworks like the STABLE Act
  • AML/BSA Compliance: Working on anti-money laundering policies

Broader Context

The political environment has shifted markedly in crypto’s favor. The Senate Agriculture Committee released a draft crypto market structure bill in November 2025, following the House’s passage of the CLARITY Act. The Senate bill grants CFTC expanded authority and classifies Bitcoin and Ethereum as "digital commodities."

SEC Chair Paul Atkins announced the agency is working on clarifying crypto asset classifications, signaling an end to decade-long regulatory uncertainty. The GENIUS Act stablecoin framework became law in July 2025, demonstrating bipartisan appetite for regulatory structures.

Between The Lines

Congress is building comprehensive digital asset regulation with unprecedented urgency. The House passed the CLARITY Act, and the Senate Agriculture Committee’s November 11 draft represents the critical next step. Chairman John Boozman (R-AR) argued "the CFTC – and only the CFTC – should regulate the spot trading of digital commodities."

Bipartisan momentum extends beyond Coinbase’s focus, with related hearings demonstrating sustained congressional commitment to creating investor protections and market structure rules. This convergence of legislative momentum, favorable administration, and intensifying competition creates a critical window for shaping foundational rules.

Competitive Landscape

Coinbase operates within a crowded coalition competing to shape emerging frameworks. The Satoshi Action Fund actively lobbies on the same CLARITY Act, while the Stellar Development Foundation focuses on stablecoin frameworks. Even traditional finance has entered—Natixis North America LLC lobbies on crypto market structure, indicating convergence between legacy and digital finance.

The addition of Avoq LLC signals escalation, bringing connections to firms with congressional leverage on financial and technology policy.

The Bottom Line

Coinbase’s $90,000 Avoq engagement adds veteran lobbyist Steven Elmendorf to its network as Congress advances market structure legislation. With the Senate Agriculture Committee’s recent draft establishing regulatory authority, this represents Coinbase’s effort to maintain influence as critical SEC-CFTC jurisdictional questions move toward resolution.

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