Coinbase CEO Brian Armstrong has urged the US Securities and Exchange Commission’s (SEC) next chair to issue an apology for the harm the agency has caused to the cryptocurrency sector. Armstrong thinks an apology and a change in policy are required to restore trust because the SEC’s treatment of digital assets has caused misunderstandings and setbacks for the industry as well as American consumers.
Armstrong recently posted a critique of the SEC’s patchy approach to digital asset regulation. He emphasized the agency’s differing positions on important matters, such as whether cryptocurrencies like Bitcoin are securities and if the laws in place are sufficient for cryptocurrency exchanges. He argues that this legislative ambiguity has impeded development and made it difficult for cryptocurrency businesses, like Coinbase, to follow the law.
Armstrong said that the sector has suffered as a result of the SEC’s reliance on enforcement proceedings rather than explicit guidelines. In order to start restoring the public’s trust in the SEC, he thinks the next chair of the SEC should drop what he calls “frivolous” lawsuits against cryptocurrency companies and issue a public apology.
Armstrong has sponsored a number of pro-crypto Senate candidates, such as lawyer John Deaton and David McCormick, in anticipation of the next elections. Armstrong accused SEC Chair Gary Gensler of targeting the cryptocurrency business, and he blasted Senator Elizabeth Warren for allegedly helping to appoint him. Armstrong believes that the election of a more pro-crypto administration could potentially influence regulatory changes.
Armstrong stated that Coinbase aims to enhance its role in its users’ financial lives by offering services that could potentially transform it into a primary financial account, avoiding the need for a traditional bank. As part of this ambition, Coinbase intends to broaden its offerings, potentially incorporating bank transfers and other functionalities to meet more comprehensive financial requirements.
According to Armstrong, establishing the United States as a leader in digital banking requires unambiguous policies that encourage innovation in the cryptocurrency space. Armstrong suggests that a shift in the SEC’s approach, which prioritizes open communication and clarity, could pave the way for a more promising future for both the sector and American customers.
