Earlier today, Brian Armstrong, Co-Founder and CEO of Coinbase, appeared on CNBC’s ‘Squawk Box’ to discuss a range of topics, including the regulatory landscape for cryptocurrencies in the United States, the ongoing SEC case against Coinbase, and the company’s global expansion plans.
Regulatory Concerns in the U.S.
Armstrong expressed concerns about the lack of clear regulatory guidelines for cryptocurrencies in the U.S. He mentioned that he was in Washington, D.C., meeting with 40 founders of other crypto companies to discuss the issue. Armstrong emphasized that 52 million Americans are already using cryptocurrencies, a number three times greater than those who own electric vehicles. He argued that the absence of clear rules is pushing the crypto industry offshore, which is a concern for innovation and job creation in the U.S.
The Trial of Sam Bankman-Fried
When asked about the upcoming trial of Sam Bankman-Fried, Armstrong stated that while such trials often grab headlines, they shouldn’t overshadow the work of responsible crypto founders. He emphasized that proper regulation could help avoid such negative incidents while preserving the industry’s innovative potential.
Shift in Regulatory Attitude
Armstrong noted some positive developments in the regulatory environment. He mentioned that two bills received bipartisan support in House committees earlier this year. Additionally, he pointed out that recent court rulings have indicated that the SEC’s approach to crypto regulation has been arbitrary and unlawful, signaling a need for new legislation.
SEC Case Against Coinbase
Armstrong expressed confidence in the SEC case against Coinbase, citing similar cases where judges ruled in favor of crypto companies. He stressed the need for clear rules from regulators, suggesting that courts would have to provide clarity in the absence of such guidelines.
Armstrong revealed that Coinbase had received regulatory approval to offer professional futures and trading to retail customers through its international exchange. He stated that while the U.S. remains Coinbase’s largest market, the company aims to be a global entity to help people worldwide benefit from crypto technology.
Global Regulatory Landscape
Armstrong lamented that the U.S. is falling behind other G-20 countries in terms of crypto regulation. He noted that 83% of these countries either have crypto legislation in place or are in the process of drafting it. He also mentioned that the U.S. share of the global crypto job market has shrunk from 40% to 29% due to regulatory uncertainty.
Meetings with Congress Members
Armstrong shared that he had a productive meeting with House Speaker Nancy Pelosi and has more meetings lined up. He said the general consensus among lawmakers is to establish clear rules that protect consumers while preserving the industry’s innovative potential.
The Role of Banks
When asked about JPMorgan Chase limiting crypto interactions for its U.K. customers, Armstrong stated that he was not sure about the specifics but emphasized that banks should not be the ones to decide what’s acceptable in the crypto industry. He argued that such decisions should be made by governments.
Featured Image via Coinbase
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