Brian Armstrong, CEO of cryptocurrency exchange Coinbase, emphasized that regulating crypto is not “rocket science” and believes the US will achieve regulatory clarity, “even if it takes a while.”
Armstrong sat down for an interview with The Wall Street Journal on June 11, days after the US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase on June 6. The SEC claims that Coinbase has been operating a stock exchange, broker-dealer and clearinghouse without needing to register with the Commission. On the regulatory front, Armstrong explained that it is not "rocket science" and that the US will achieve "the right outcome, even if it will take a while".
He emphasized that the SEC's lawsuit with Coinbase is important for the entire US cryptocurrency industry, which he hopes will lead to greater clarity and prevent the country from "falling behind" the rest of the world.
Armstrong believes that once the United States has clear and stable regulations on cryptocurrencies, it will encourage crypto businesses to return to the United States. "We're going to see entrepreneurs who left the US coming back. They're going to say we' re not going to be randomly attacked or have ridiculously high legal bills at any given moment." On April 11, the US share of global cryptocurrency developers fell 26 percent from 2018 to 2022, citing “regulatory clarity” as a significant f actor, so " US dominance may be slipping.”
Armstrong highlighted key regulatory points that he believes need clarification, including a clear "line" between the two largest US financial watchdogs: the SEC and the Commodity Futures Trading Commission. He noted that while other countries such as the UK have one financial reg ulator, the US is currently seeing a "turf war" between two regulators. He argues that some basic regulations can simply be carried over from traditional finance, such as basic consumer protections, financial statement audit requirements, and anti-money laundering and know -your-customer procedures.
Armstrong reiterated that there is currently "no clear rulebook" for cryptocurrency regulation in the US, and that Coinbase has been unable to "get any feedback" despite repeated requests for more clarity from the SEC. Earlier, Armstrong responded to the SEC lawsuit against Coinbase on Twitter on June 7, saying he was proud to "represent the industry in court" and gain some "clarity on the rules around cryptocurrencies."
