Coinbase CEO Armstrong Urges Stronger U.S. Crypto Regulatory Framework
Coinbase CEO Brian Armstrong has voiced frustration over SEC charges, expressing how his company has provided clarity but faces difficulty with the commission.
Despite over 30 meetings in the past 18 months to gain regulatory clarity, Coinbase was charged in June for operating an unregistered securities exchange.
Armstrong, in an interview, highlighted the extensive efforts made by Coinbase to defend its stance, seeking guidance on crypto assets' classification.
The ongoing tension is described as a "turf war" between the SEC and CFTC, causing regulatory confusion.
When comparing with the United States, Armstrong finds the United Kingdom more crypto-friendly.
He said:
"Everybody has really said that they want the UK to be a crypto and Web3 hub."
Armstrong once called out the U.S. government to establish a clearer regulatory framework for crypto in an interview with CNBC:
Regulatory Turf War Challenges Compliance
A regulatory dispute between the SEC and Coinbase intensifies as charges for operating an unregistered securities exchange are brought against the cryptocurrency platform.
CEO Brian Armstrong expresses frustration, citing over 30 meetings with the SEC for clarity, yet facing challenges.
"We haven't really gotten any feedback from them about which assets they believe are securities and which they believe are not. We didn't get any feedback; all we got was a Wells Notice."
In the lawsuit filed on 6 June, the SEC accused Coinbase of operating an unlicensed securities exchange.
The regulatory body asserted that it deemed several crypto assets listed on Coinbase, including Solana, Polygon, and Cardano, as unlicensed securities under U.S. federal law
However, Coinbase disputes this interpretation, asserting that the assets do not qualify as securities.
The ongoing "turf war" between the SEC and CFTC adds confusion to crypto regulations.
Armstrong expressed:
"It’s really nice to have just one federal regulator for both commodities and securities, because they don't have the issue that we have in the U.S. where the CFTC and the SEC are sometimes having a bit of a turf war over who regulates which assets, and it's kind of a jump ball between them sometimes."
Armstrong notes the UK's friendlier approach, contrasting the regulatory landscape with the U.S., and anticipates Congressional legislation for clearer oversight.
He added:
"It's a total non-issue in the UK. The number one thing we look for in terms of international expansion and investment is regulatory clarity."
U.S. Crypto Ongoing Challenges
The regulatory challenges within the US cryptocurrency landscape persist as Coinbase confronts SEC charges.
CEO Armstrong of Coinbase indicates a regulatory "turf war" between the SEC and CFTC, adding complexity to the situation.
Disputes emerge regarding the classification of tokens such as Solana and Cardano as securities.
The UK's clearer regulations are contrasted with the US, creating uncertainty for crypto exchanges.
Certain US lawmakers support regulatory initiatives to uphold industry stability.
Armstrong contemplates pursuing legal avenues through a judicial appeal and looks forward to potential Congressional legislation alleviating crypto oversight challenges.
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