In a recent interview with the Wall Street Journal, Brian Armstrong, the CEO of cryptocurrency exchange Coinbase, expressed his confidence that the United States will achieve clarity with crypto regulations, "even if it takes a while." Armstrong believes that clear and stable regulations are essential for luring entrepreneurs back to the country and preventing it from falling behind in the global crypto industry.
The interview took place on June 11, shortly after the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase on June 6. The SEC alleged that Coinbase had been operating as a securities exchange, broker-dealership, and clearing house without proper registration. However, Armstrong stated that the registrations were not required for Coinbase's operations since the assets traded on the platform are commodities.
Regarding the lawsuit, Armstrong explained, "The assets that we do trade, those are commodities, so they don't require those registrations... we are trading on our exchange crypto commodities." He also mentioned that Coinbase had acquired a broker-dealer license, but due to difficulties in activating it, the license remained dormant.
Armstrong emphasized that regulations for the crypto industry in the United States are crucial, and he believes that the country will achieve the "right outcome" in due course. He stated that once clear and stable regulations are in place, it will encourage the return of crypto businesses to the US. Entrepreneurs who left the country may consider coming back, as they would have confidence in not being attacked randomly or facing exorbitant legal bills.
The Coinbase CEO highlighted the need for clarity in regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC), the two major financial regulators in the US. He pointed out that the presence of two regulatory bodies has created a "turf war," unlike countries such as the United Kingdom, which have a single financial regulator.
Armstrong's optimistic outlook on achieving the right outcome for crypto regulations aligns with his previous statements about the future of cryptocurrencies. In May 2022, he predicted that within a decade, one billion people would have used or tried crypto, a significant increase from the current estimated 200 million users [1].
The SEC's lawsuit against Coinbase is seen as a pivotal moment for the US cryptocurrency industry, with hopes that it will lead to more clarity and prevent the country from losing its competitive edge [3]. With the right regulations in place, Armstrong believes the US can foster an environment that encourages innovation and attracts crypto entrepreneurs.
As the crypto industry continues to evolve, it remains to be seen how regulatory frameworks will develop and shape the future of cryptocurrencies in the United States. However, Coinbase's CEO remains optimistic that the US will ultimately find the right outcome for the industry, paving the way for its continued growth and innovation.
Reference:
URL: ttps://www.bloomberg.com/news/articles/2022-05-02/coinbase-ceo-predicts-one-billion-crypto-users-within-a-decade
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