Coinbase CEO Urged US Crypto Lawmakers For Clear Rules

Key Points:

• The SEC’s recent measures are jeopardizing the United States’ financial leadership, according to Coinbase CEO Brian Armstrong.
• Armstrong said that the exchange would work to mobilize crypto users in the United States into a political force.
• He urged listeners to sign a petition to the financial regulator stating that staking does not qualify as a security subject to its enforcement.

After a warning from the United States Securities and Exchange Commission (SEC), Brian Armstrong, CEO of US-based cryptocurrency exchange Coinbase, repeated calls for crypto users to elect pro-crypto politicians during a Twitter live chat on Thursday.

Recent SEC measures are jeopardizing the United States’ financial leadership, according to Armstrong.

Armstrong said that Coinbase would work to unite the approximately 50 million US residents who utilize cryptocurrency into a political force. The remarks came only one day after the SEC issued a Wells notice to the crypto exchange about its staking services, Coinbase Earn and Coinbase Wallet, implying a future enforcement action.

In areas like law and banking regulations, the United States lags behind nations such as the United Kingdom, Brazil, and Singapore, according to Armstrong. If nothing is done, things might grow worse.

The SEC’s move is part of a series of regulatory warning shots fired at other crypto businesses in the United States. Gary Gensler, the committee’s chairman, is resolute in his efforts to crush the crypto market.

The CEO also launched a poll on “We want to innovate in America” to “Support Crypto.”

Armstrong’s call to action was the latest step by the Coinbase CEO, indicating a shift in his attitude on combining business and politics. He said in a blog article in September 2020 that the trade should not include political concerns.

Notwithstanding the Wells warning, it is unclear if the SEC plans to take enforcement action against Coinbase. Armstrong continued demands on Twitter Spaces for listeners to sign a petition to the financial regulator stating that staking does not qualify as a security subject to its regulation.

As Coincu reported, the crypto exchange requested clarification from the SEC in a comment letter that basic staking services are not securities.

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Harold

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