Coinbase CEO Vows to Fight for Crypto’s Success, Cites Dangers of U.S. Crypto Regulation ⋆ ZyCrypto
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Brian Armstrong, CEO and co-founder of cryptocurrency exchange Coinbase, has vowed to fight to ensure crypto thrives in the U.S. while opposing the government’s current approach to the asset class.
Inside something Twitter threadArmstrong highlighted his problems with the US government’s approach to crypto. One of the US government’s strongest policy arguments for cryptocurrency is that it’s a matter of national security — an attitude he notes has the potential to drive crypto innovation offshore.
Armstrong argues that the US cannot afford to miss out on crypto like it has missed out on other innovations like semiconductors and 5G technology.
The Coinbase chief also brought up US regulations forcing the cryptocurrency. Regulation by enforcement has a terrible “chilling effect,” he said. This effect, which essentially prevents the legal exercise of rights under the threat of legal sanctions, is already leading to a huge amount of crypto talent, asset issuers and startups moving offshore.
Despite this hostile environment in the US, Armstrong noted that Coinbase will continue to fight to ensure crypto succeeds for everyone. He added that crypto is too important to America and the free world to fail.
“Coinbase is a global company, but we’re based here in the US and we’re fighting to make sure crypto succeeds here for everyone. It is too important to America and the free world,” he wrote.
Coinbase remains committed to helping craft crypto regulations
Armstrong’s remarks came shortly after the White House, which has often called crypto a national security issue, released its first-ever recommendations for a regulatory framework for crypto.
Meanwhile, Coinbase – the largest exchange by trading volume in the US – has come under enforcement scrutiny on several occasions. According to a Bloomberg report, the SEC announced in July that it had redoubled its investigation into whether a publicly traded exchange offered unregistered securities.
Coinbase responded to the SEC’s move by reiterating that the exchange does not list securities. Similarly, Armstrong commented in the company’s August earnings call that more crypto regulations would benefit everyone and that Coinbase is committed to working with all global regulators to ensure crypto gets regulatory clarity.
Coinbase added in its shareholder letter that it had submitted a petition asking the SEC to review and update its crypto regulations.