Coinbase, one of the largest cryptocurrency exchanges, is actively working to educate both the public and lawmakers in an effort to prevent the spread of misconceptions linking crypto to illicit finance.

Phillip Martin, Coinbase’s chief security officer, recently revealed this at the Ripple Swell conference. He stated that well-informed lawmakers are crucial for enacting better laws. “Educated lawmakers make much better decisions,” Martin remarked, warning that misinformation can lead to stifling regulations that harm innovation in the cryptocurrency space.

Coinbase has been sharing insights about the safety, security, and consumer protection measures being employed in crypto to prevent illegal activities. According to Martin, education remains the “silver bullet” in addressing these issues. Coinbase aims not only to clarify crypto’s capabilities for lawmakers but also to educate newcomers to the industry about the specific risks they may encounter. This would reduce the exaggerated fears about illicit activities often portrayed in mainstream media.

Debunking the Myth of Crypto as a Tool for Crime

Martin went on to challenge the narrative that crypto users primarily use it for illegal purposes. This narrative, he said, is misleading and unsupported by facts. Citing an October 1 report from Coinbase, Martin pointed out that only 0.34% of crypto transactions are linked to illicit activities, a stark contrast to the estimated 33% of cash in circulation believed to be involved in criminal and tax evasion activities in the U.S.

Martin underscored that blockchain’s transparency allows authorities to track and analyze transactions in ways that are simply not possible within the traditional financial system. He also stated the unique advantage of blockchain technology in fighting illicit finance.

A Glimmer of Optimism

With the U.S. elections drawing closer, Martin expressed cautious optimism that the future administration might take a friendlier approach toward crypto regulations. He further noted a “softening” of attitudes among Democrats, as the party begins to recognize the growing demand for a more equitable financial system.

This educational push by Coinbase comes as the exchange continues its legal battles with the U.S. Securities and Exchange Commission (SEC) over the need for clearer regulatory frameworks.

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