Coinbase CEO Brian Armstrong believes the US will reach the "right outcome" for crypto
June 12, 2023 7:05 AM
Coinbase CEO Brian Armstrong has recently stated in an interview that crypto entrepreneur return to the U.S. only when the government discovers the "right outcome" for regulations.
Brian Armstrong, CEO of bitcoin exchange Coinbase, stressed that regulating cryptocurrencies isn't "rocket science" and is sure that the US will reach regulatory certainty, "even if it takes a while."
On June 11, Armstrong agreed to an interview with The Wall Street Journal, just days after the Securities and Exchange Commission (SEC) launched a lawsuit against Coinbase. According to the SEC, Coinbase has been running a securities exchange, broker-dealership, and clearing house without being registered with the agency.
In the interview, Armstrong addressed the case, noting that he feels those registrations were not essential for Coinbase to operate.
"We are trading crypto commodities on our exchange, which means that our assets do not require the aforementioned registrations because they are commodities."
Despite the fact that Coinbase is not a broker-dealer, Armstrong stated that the exchange had difficulty activating a license.
"We aren't claiming to be a broker-dealer; we have a broker-dealer certification that is inactive because they won't let us activate it," he explained.
When asked about regulations, Armstrong stated that they are not "rocket science" and that the United States will eventually reach the "right outcome, even though it takes a while."
He emphasized that the SEC vs. Coinbase action is critical for the overall cryptocurrency business in the United States, and he expects that it will lead to more transparency and avoid the country from "falling behind" the rest of the world.
Armstrong believes that once cryptocurrency regulations in the United States are clear and solid, it will stimulate the return of crypto enterprises to the country.
"We will see innovators who left the United States return." They'll claim that we won't be attacked at random or face exorbitant legal fees at any time."
Armstrong emphasized crucial regulatory aspects that he believes need to be clarified, including clear "boundaries" between the two major US financial authorities, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
While several nations, such as the UK, have a single financial regulator, the United States is currently experiencing a "turf war" between two regulatory agencies.
He argues that certain key rules, such as basic consumer protection, financial report auditing requirements, and processes for both anti-money laundering and know your customer, may be simply transferred from traditional finance.
Armstrong stated that there is presently "no clear rule book" for cryptocurrency regulations in the United States, and that after repeatedly requesting the SEC for clarification, Coinbase was unable to "get any feedback."
Armstrong replied to the SEC complaint against Coinbase on Twitter on June 7, stating he is glad to "represent the industry in court" and obtain some "clarity around crypto rules."