Coinbase CEO calls for clear crypto regulations in US to catch up with other global financial hubs
According to Armstrong, the crypto asset market is here to stay, which is why traditional financial services are integrating with the blockchain and cryptocurrency industries.
The call for crypto asset regulations in the US has intensified following the collapse of Terra Luna UST and FTX last year. US investigators are already looking into the FTX and Alameda case with top officials, including former CEO Sam Bankman-Fried (SBF) and former FTX engineering chief Nishad Singh, among others, in police custody. Last month, the Securities and Exchange Commission charged Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multibillion-dollar securities fraud involving an algorithmic stablecoin and other crypto assets.
However, it is the push towards investing in cryptocurrency, the altcoin market and the stablecoin industry that has attracted a lot of attention. Earlier last month, cryptocurrency exchange Kraken announced the closure of its crypto betting program after it agreed to pay a $30 million fine to the SEC. SEC Chairman Gary Gensler has indicated that all cryptoassets, with Bitcoin being an exception, are unregistered securities.
This is evident with the recent pressure from the New York Department of Financial Services (NYDFS) which ordered Paxos to stop minting new Binance-backed BUSD.
Coinbase and its CEO are calling for clear crypto regulations
According to Coinbase Global Inc (NASDAQ: COIN ) CEO Brian Armstrong, the US is lagging behind in getting its regulatory act together while the rest of the world is embracing crypto technology. In a recent television interview, Armstrong defended the cryptocurrency staking industry, noting that it is not a security at all. The tech billionaire said Coinbase is ready to defend the betting industry in court if the need arises.
According to Armstrong, the crypto asset market is here to stay, which is why traditional financial services are integrating with the blockchain and cryptocurrency industries.
“Many traditional financial services firms are integrating this technology,” Armstrong said. “Everybody from JPMorgan, Visa and Mastercard, Franklin Templeton, they have projects and teams internally working on how to integrate crypto into their services.”
As a result, Armstrong has called on US regulators to update their financial systems to serve everyone equally.
The US financial system does not serve everyone equally – it’s time for an update. @SquawkCNBC @andrewrsorkin
— Coinbase (@coinbase) 1 March 2023
He added that most global financial hubs, including Singapore, Hong Kong and the European Union, have already adopted friendly crypto regulations to attract foreign and local investors. As a result, the tech billionaire indicated that his priority this year would be to advocate for clear crypto regulations in the United States.
“My first priority this year is the political environment,” Armstrong said. “The rest of the world has actually embraced crypto. We’ve seen all the major financial hubs, Singapore, Hong Kong and London, and the European Union has just passed comprehensive crypto legislation … We need a clear rulebook so that this industry can be built here.”
next
