In a recent interview with WSJ, Coinbase CEO Brian Armstrong expressed his confidence that the United States will ultimately find the “right outcome” for cryptocurrency regulations. He believes that once the government establishes clearer guidelines, entrepreneurs and businesses who left the country due to regulatory uncertainty will return.
Just a few days after the SEC filed a lawsuit against Coinbase, Armstrong discussed the case, explaining that he believes the platform did not require those registrations as “the assets that we do trade, those are commodities, so they don’t require those registrations.” He also clarified that Coinbase does not claim to be a broker-dealer, noting that its broker-dealer license has yet to be approved.
Commenting on the regulatory landscape, Armstrong stated that developing proper regulations is not “rocket science” and that the United States will eventually find the right approach, even if it takes some time. He emphasized the importance of the Coinbase lawsuit for the entire US cryptocurrency industry, hoping it would provide more clarity and prevent the nation from “falling behind” the rest of the world in terms of crypto adoption.
Armstrong also highlighted the need for clear “boundaries” between the two major US 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 United States faces a “turf war” due to the coexistence of separate regulatory bodies.
Despite Coinbase’s efforts to seek more clarity from the SEC, Armstrong noted that there is still “no clear rule book” for cryptocurrency regulations in the country. He believes that many fundamental regulations can be transferred from traditional finance, such as consumer protection measures, financial statement audit requirements, and Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
However, the recent SEC lawsuit against Coinbase highlights the ongoing complexities surrounding crypto regulations. While Armstrong remains optimistic about the future, establishing a clear regulatory framework will require a medley of different stakeholders in the industry to work collaboratively with regulators to foster a conducive environment for innovation and growth. Until then, crypto enthusiasts and businesses will continue to wrestle with regulatory uncertainty and navigate the ever-evolving landscape.
Source: Cointelegraph
