Coinbase CEO calls for a clear rulebook for crypto
In a interview with Bloomberg, Coinbase co-founder and chief executive officer (CEO) Brian Armstrong addressed the current regulatory approach enforced by the US government. The CEO of the US-based exchange has reiterated that “staking” services should not be registered as a security under the jurisdiction of the Securities and Exchange Commission (SEC), saying:
Customers never hand over their assets to Coinbase for example. And we’re really just providing a service that passes through these coins to help them participate in staking, which is a decentralized protocol.
Furthermore, the Coinbase CEO has stated that despite the ongoing regulatory actions taken by the SEC in recent months following the FTX collapse, the company maintains a “good relationship” with regulators not only in the US, but also in Europe, Asia, and Canada , where the exchange delivers its services.
Additionally, Armstrong has explained that the crypto industry needs a clear set of rules to stay within the regulatory parameters so that customers can be afforded good consumer protection. Armstrong added:
If clear rules are published, we will gladly follow them. And if the rules change, we are happy to follow them. We want to bring this industry within the regulatory framework so that we have good consumer protection. But we also want to preserve the innovation potential.
Coinbase CEO Says Crypto Has The Power To Update Financial Systems
Speaking to Bloomberg, Armstrong addressed the recent launch of the test net for their newest product, “Base,” an Ethereum Layer 2 (L2) network, which says it is “excited” about decentralized finance (DeFi), with many firms looking at how to integrate crypto into their financial services, including major firms such as JP Morgan, Visa , Mastercard , and asset management firm Franklin Templeton, according to Coinbase’s CEO.
Coinbase has launched new services and products in the crypto ecosystem to offer development and growth to its services, to what Armstrong argued the US “needs to be a technology hub.”
For the leader, the future of crypto must be built in the United States with a clear regulatory environment that will allow the American financial system to grow.
Armstrong also stated that he has “no concerns” about the stablecoin sector of the crypto industry, despite the investigation into Paxos and Binance token BUSD. Armstrong added that he is “quite bullish” on the USDC stablecoin, which peer-to-peer payment technology company Circle, a Coinbase partner, issues.
Coinbase has advocated introducing “modern” regulatory guidelines for the crypto industry, and recently launched a pro-crypto policy campaign in all 435 US congressional districts called “Crypto435.”
The company’s stock, which trades under the COIN ticker, has grown steadily amid recently released inflation data, a medium-term victory for investors in recovering stocks and crypto. Coinbase shares are up over 80% since the start of 2023 and are currently trading at $64 on the Nasdaq stock market.
Within seven days. Despite the recent rally, COIN stock has been trading sideways and in the red over the past 24 hours, down 0.16%. COIN is trading flat with a loss of 0.25%, targeting its next resistance wall at $68.
Featured image from Unsplash, chart from TradingView.com.
