Coinbase CEO Has Urged Congress To Intervene In Cryptocurrency Legislation

Key Points:

• Coinbase CEO Brian Armstrong has urged the United States Congress to shield the cryptocurrency business from the SEC.
• He contended that US lawmakers may need to take over the SEC in order to save the country’s crypto industry from falling behind.

Coinbase CEO Brian Armstrong is requesting Congress to protect the digital currency industry from the SEC.

Armstrong stated in a tweet on April 21 that “it is critical for regulators to establish a policy and then enforce it.” There will be no enforcement until clear guidelines are in place.”

He contended that US lawmakers may need to take over the SEC in order to save the country’s crypto industry from falling behind. “At this point, it appears that Congress will need to step in,” the tweet said.

After meeting with the SEC, the Coinbase CEO requested congressional assistance. Prior to the conference, Armstrong stated that the banking regulator’s regulatory strategy had caused immeasurable harm to the United States.

The SEC’s approach to the cryptocurrency market has driven some enterprises out of the country. Three cryptocurrency exchanges, for example, Beaxy, Paxful, and Bittrex, recently ceased business due to severe regulation. Kraken was previously fined $30 million by the SEC for its staking program.

According to Coincu, CEO Brian Armstrong previously stated that the cryptocurrency exchange may consider relocating outside of the United States if the regulatory environment for the business does not improve.

According to Coinbase CEO Brian Armstrong, the United Kingdom’s regulatory climate for the cryptocurrency industry benefits from the presence of a single regulator, the Financial Conduct Authority (FCA), which covers both commodities and securities.

In contrast, the United States has two regulatory agencies, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), resulting in regulatory ambiguity and inconsistent pronouncements from the CFTC and SEC chiefs. Armstrong underlined the importance of having a clear set of rules in place to conduct business in this environment.

While it is unclear whether Coinbase would relocate outside of the United States, Armstrong’s comments emphasize the importance of regulatory clarity for bitcoin exchanges and businesses. As the industry grows and matures, regulatory frameworks will likely become more vital in maintaining the bitcoin market’s stability and validity.

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