In a recent interview with the Wall Street Journal, the CEO of Coinbase Exchange, Brian Armstrong, revealed his opinion that the United States government would come up with crypto regulatory clarity soon.
According to the report, Armstrong commented on the current outflow of crypto-related startups in the US, stating that the firms would only return to the cou try once the regulators have achieved regulatory clarity for the emerging crypto industry.
Furthermore, the CEO pointed out during the interview that regulating the crypto industry is not rocket science. He believed that the regulators of the country, no matter how long it took them, would find a better outcome for crypto regulations.
In addition, Armstrong expressed his view a few days after the SEC filed a case against the exchange, accusing it of illegally offering brokerage and securities exchange services.
However, the CEO of Coinbase argued against the accusations stating that the firm does not need to take permission or register with the regulator before providing such services in the territory.
Furthermore, Armstrong claimed that Coinbase trades assets that are classified as commodities that are not under the jurisdiction of the SEC, hence, the firm is not obliged to register with the commission.
Regulatory Clarity Would Bring Back Crypto Entrepreneurs To The US
In addition, the Chief executive officers mentioned that the firm has a dormant license for broker-dealership, which the regulators have refused to approve for a while. Nonetheless, the firm didn’t claim to be a broker-dealer despite the permit.
Commenting on digital assets regulation, CEO Brian Armstrong told his host that he believed regulating crypto space is not as complicated as rocket science. He added that he hoped the US government would work out something suitable and progressive in that regard.
He further pointed out that the current lawsuit between his firm, Coinbase, and the SEC is vital to the future of the cryptocurrency industry in the United States regarding regulation.
The CEO added that it is his wish that the outcome of the case would create a more clear regulatory pathway to prevent the nation from lagging behind other countries in terms of crypto growth and regulation.
Furthermore, Armstrong opined that the presence of a clear and transparent regulatory framework would stabilize the crypto market in the US and also facilitate the return of crypto start-ups that are currently departing the country.
In addition, he said crypto firms would be eager to return to the country as they would no longer fear abrupt attacks from regulators or incurring high official bills or fines without being pre-informed.
Armstrong Is Happy To Fight For Crypto Rule Clarity
Meanwhile, recent statistics revealed that the share of global cryptocurrency developers in America has drastically declined from 2018 to 2022 by 26%. It added that the lack of regulatory clarity that beguiled the US majorly contributed to the massive fallout.
According to Armstrong, there are some key areas that urgently need regulation in the US. First, he pointed out that a clear line should be drawn regarding the roles of the two major US financial regulators, the SEC and the CFTC, in the crypto industry.
He highlighted that the two agencies are currently battling out who should be the major oversight on crypto between them. Meanwhile, other countries like the United Kingdom have only one financial regulator. This is a major drawback in the US crypto market.
Furthermore, the CEO believes that some regulatory statutes can be copied easily from the traditional financial system and would be fit to regulate the digital economy. Citing examples, he mentioned KYC and AML procedures, financial statement audit criteria, and customer protection laws.
Armstrong claimed that Coinbase has been calling on the US regulators for crypto regulatory clarity to no avail. Nonetheless, he concluded that he is glad to represent Coinbase and the general crypto industry to fight for regulatory clarity in the current lawsuit.