Coinbase CEO Bullish On US Crypto Regulations
Coinbase CEO Brian Armstrong expressed his belief that cryptocurrency entrepreneurs will return to the United States once the government establishes clear regulations for the crypto industry. Armstrong emphasized that regulating cryptocurrencies is a simple task and expressed confidence that the US will eventually achieve regulatory clarity, even if it takes time.
Coinbase CEO Brian Armstrong believes crypto entrepreneurs will return to the United States once the government establishes the "right outcome" for cryptocurrency regulationshttps://t.co/Fp8rzO8u5s
— crypto.news (@itscrypto_news) June 11, 2023
Armstrong’s Confidence in US Crypto Regulations
Armstrong’s comments come amidst a clash with regulators who hold differing opinions on his approach. Some view his stance as bold and potentially transformative, while others see it as reckless posturing by a Silicon Valley crypto enthusiast who may be inviting legal consequences. The interview took place just days after the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging that the company had been operating as a securities exchange, broker-dealership, and clearinghouse without proper registration.
Armstrong addressed the lawsuit, stating that Coinbase did not require the aforementioned registrations to operate. However, he acknowledged that the exchange had faced difficulties in activating a dormant broker-dealer license it had acquired. The Coinbase CEO also challenged the SEC’s jurisdiction, arguing that securities laws are ill-suited for regulating digital assets. He appealed to Congress and the American people to bring attention to what he sees as the agency’s flawed approach.
Preventing Regulatory Lag
Regarding regulations, Armstrong reiterated that it is not a complex matter and expressed hope that the SEC’s lawsuit against Coinbase will ultimately lead to greater certainty for the entire US cryptocurrency industry. He stressed the importance of preventing the United States from falling behind the rest of the world due to a lack of regulatory transparency.
Armstrong highlighted specific regulatory points that need clarification, such as establishing clear boundaries between the SEC and the Commodity Futures Trading Commission (CFTC), similar to the regulatory structure in the United Kingdom. He also suggested transferring rules from traditional finance to the crypto industry, including consumer protection measures, financial statement audit requirements, anti-money laundering (AML) protocols, and know-your-customer (KYC) procedures.
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.
Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and…— Brian Armstrong 🛡️ (@brian_armstrong) June 6, 2023
Despite actively seeking clarity from the SEC, Armstrong claimed that Coinbase had received no feedback. He emphasized the urgent need for a clear rule book for cryptocurrency regulations in the United States.
