Brian Armstrong, the co-founder and CEO of Coinbase, recently published an op-ed on CNBC titled “Offshoring Crypto Hurts the Financial System and America’s Geopolitical Standing”. In the op-ed, Armstrong raises the question of whether policymakers should enact real legislation in the cryptocurrency industry to prevent businesses from going abroad. He points out that without proper regulation, the US risks losing its position as a leader in the financial industry, with other countries such as China and Russia making moves to fill the void.
Armstrong also highlights “the need for clear guidelines instead of enforcement actions that only serve to make a point.”CNBC
In the interview, he cites the current actions of the SEC as an example of this, noting that the agency is focusing on enforcement without providing clear guidance on what the rules are. Ultimately, Armstrong argues that while regulation is necessary to ensure safety and protect consumers, overregulation could stifle innovation and drive businesses abroad.
Armstrong’s op-ed emphasizes the importance of finding the right balance between regulation and innovation in the cryptocurrency industry. He urges policymakers to provide clear guidelines to enable the growth of the industry in the US while protecting consumers and maintaining the country’s position as a financial leader on the global stage.
Opinion on Legislation :
Brian further provides his opinion stating “new legislation is necessary because the current financial system is not working for a majority of Americans. Around 80% of Americans feel that the fees are too high, the system is not serving everyone equally, and there are delays. Moreover, the current financial system relies on outdated technology and laws that were created before the internet existed.”
Cryptocurrency can be the most important technology to update the financial system. Interestingly, one in five households in the US is using cryptocurrency, and crypto advocates are organizing themselves to elect candidates across all 435 congressional districts who will help create the industry in America safely.Link to Campaign Content
In summary, Armstrong believes that the financial system needs an update through legislation, as the current system is not serving everyone equally, fees are too high, and there are delays. Cryptocurrency is the most important technology to achieve this goal, and one in five households in the US is already using it. Crypto advocates are now organizing themselves to elect candidates across all 435 congressional districts who will help create the industry in America safely.
View on regulation :
Brian noted that, he has been spending a lot of time in Washington DC lately, and what’s encouraging to see is the strong bipartisan support for legislation related to cryptocurrency. He further states that, after witnessing the recent events with FTX, policymakers understand the need for consumer protection while also recognizing the potential for innovation. They want to ensure that the cryptocurrency industry is built in the US with strong safeguards for consumers, and not outsourced like the semiconductor industry or 5G technology. There are currently three different groups in DC, including senators, working on drafting bills in various forms. Although it’s a challenging process to get legislation passed, he is excited to see passionate individuals working towards making it a reality. Moreover, he believe’s that the American voters are also eager to elect candidates who support the advancement of the cryptocurrency industry through favorable legislation.
Brian Armstrong’s View on Senator Warren critic of Cryptocurrency :
Senator Warren often compares crypto to fraud or used by criminals.
Brian argues that the statements from Senator Warren is incorrect. He states “Now, that’s just simply not true” is incorrect. Allow me to explain why. Take Coinbase as an example, which I founded over 10 years ago with a vision of building a compliant and regulated cryptocurrency company in the United States. We have been regulated for a decade now and started by obtaining money transmission licenses in the US, which was the closest thing to a license that made sense at the time. Over the years, we have gone beyond that, securing one of the first Bitlicenses in New York, being regulated by the CFTC, a federal regulator in the US, and registered with FinCEN. And that’s just in America. The US runs the risk of being left behind, as the rest of the world is actively attempting to lure crypto companies to their countries. London, Singapore, and Hong Kong, among other financial centers, are welcoming crypto businesses. Furthermore, Europe recently enacted comprehensive crypto legislation, which puts the US at risk of lagging behind.”
Brian ask to have clear regulation so that crypto can thrive in the United States. He believes in crypto and asking regulators to be considerate and provide clarity on regulations instead of keeping people and companies in vague territory.
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Photo by Matt Winkelmeyer/Getty Images for Vanity Fair
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