Coinbase CEO Brian Armstrong believes crypto entrepreneurs will return to the United States once the government establishes the “right outcome” for cryptocurrency regulations.
In a recent interview, Armstrong emphasized that regulating crypto is simple and expressed confidence that the United States will achieve regulatory clarity, even if it takes time.
Armstrong’s comments come amid a clash with regulators, with differing opinions about his approach. Some see his stance as bold and potentially transformative. On the other hand, others view it as reckless posturing by a Silicon Valley crypto enthusiast who may be inviting legal consequences.
The interview is a few days after the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase on allegations of operating a securities exchange, broker-dealership, and clearinghouse without proper registration.
Armstrong addressed the lawsuit, stating that Coinbase did not require these registrations to operate. However, he acknowledged that the exchange had faced difficulties activating a dormant broker-dealer license it acquired.
The Coinbase CEO also challenged the SEC’s jurisdiction, arguing that securities laws are inappropriate for regulating digital assets and appealing to Congress and the American people to highlight the agency’s flawed approach.
SEC vs. Coinbase outcome will shape US’ crypto industry
Regarding regulations, Armstrong reiterated that it is not a complicated matter and expressed hope that the SEC vs. Coinbase lawsuit will lead to more certainty for the entire United States 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.
The Coinbase CEO 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 structure in the United Kingdom.
He also suggested transferring rules from traditional finance to crypto, including consumer protection, financial statement audit requirements, anti-money laundering (AML), and know-your-customer (KYC) procedures.
Despite repeatedly seeking clarity from the SEC, Armstrong claimed that Coinbase had received no feedback and that there currently needs to be a clear rule book for cryptocurrency regulations in the United States.