US Will Get ‘The Right Result’ For Crypto, Eventually – Coinbase CEO

Brian Armstrong, CEO of cryptocurrency exchange Coinbase, is confident that the United States will achieve clarity with crypto regulations, “even if it takes some time.” However, he believes it is a key component in bringing entrepreneurs back to the country.

Armstrong sat down for an interview with The Wall Street Journal on June 11, just days after the SEC filed a lawsuit against crypto exchange Coinbase on June 6. with the commission.

WSJ full interview on youtubehttps://t.co/yIF3dGI7oN

— Brian Armstrong ️ (@brian_armstrong) June 10, 2023

Armstrong addressed the lawsuit in a WSJ interview, explaining that he believed those registrations were not required for Coinbase to operate.

“The assets we trade are commodities, so they don’t need those registrations (…) We are trading on our exchange crypto commodities.”

Despite not claiming to be one, Armstrong also pointed out that Coinbase has encountered difficulties activating its broker-dealer license.

“We do not claim to be a broker-dealer, we have obtained a broker-dealer license which is still inactive, as they will not allow us to activate it” he said.

As for the rules, Armstrong explained that it is not “rocket science” and that the US “will get the right result, even if it takes some time.”

He added that the SEC vs. Coinbase lawsuit is important for the US cryptocurrency industry as a whole, hoping it will bring more clarity and prevent the country from “lagging behind” the rest of the world.

Armstrong is of the opinion that once the US has clear and stable regulations regarding cryptocurrencies, it will encourage the return of crypto businesses to the country.

“We will see entrepreneurs who have left America and come back. They’ll say we’re not going to be randomly attacked or have incredibly high legal bills any time soon.

Cointelegraph previously reported on April 11 that the share of global crypto developers in the US declined by 26% from 2018 to 2022, with the report citing “little regulatory clarity” as a key factor and “the US’s lack of privacy” as a result. The edge can slip.”

Armstrong highlighted key regulation points that he believes need to be clarified, including clear “boundaries” between the two major United States financial regulators – the SEC and the Commodity Futures Trading Commission (CFTC).

He pointed out that while other countries, such as the United Kingdom, have one financial regulator, the US is currently witnessing a “turf war” over two regulatory bodies.

Connected: SEC Lawsuits Against Binance and Coinbase Unite the Crypto Industry

They believe that many fundamental regulations can be easily transferred from traditional finance such as basic consumer protections, financial statement audit requirements, and both Anti-Money-Laundering (AML) and Know Your Customer (KYC) Processes.

Armstrong reiterated that there is currently “no clear rulebook” for cryptocurrency regulation in the US, and that Coinbase “has been unable to receive a response” despite persistent requests from the SEC for more clarity.

Armstrong responded to the SEC lawsuit against Coinbase on Twitter on June 7, saying he was proud to “represent the industry in court” and to have “some clarity about crypto regulations.”

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