In a recent press interview, The CEO of Coinbase Brian Armstrong expressed that crypto entrepreneurs would only return to the U.S. when the government finds the “right outcome” for regulations. Brian Armstrong, the CEO of cryptocurrency exchange Coinbase, reiterated that regulating crypto isn’t “rocket science” and is confident that the United States will attain regulatory clarity, “even if it takes a while.”
Despite not claiming that Coinbase is a broker-dealer, Armstrong mentioned that the exchange had faced difficulties activating a license. “We don’t claim to be a broker-dealer, we have acquired a broker-dealer license that is still dormant because they won’t allow us to activate it,” he said.
He noted that the SEC vs. Coinbase lawsuit is important for the U.S. cryptocurrency industry as a whole, and he hopes it will lead to more clarity and prevent the country from “falling behind” the rest of the world.
Armstrong believes that once there are clear and stable regulations regarding cryptocurrency in the U.S., it will encourage the return of crypto businesses to the country.
Armstrong mentioned key regulation points that needs to be clarified, including clear “boundaries” between the two major United States financial regulators: the SEC and the Commodity Futures Trading Commission.
He indicated that while other countries, such as the United Kingdom, have one financial regulator, the U.S. is currently seeing a “turf war” between two regulatory bodies.
He is of the opinion that several fundamental regulations can simply be transferred from traditional finance, such as basic consumer protection, financial statement audit requirements, and procedures for both Anti-Money Laundering and Know Your Customer.