Cryptocurrency regulation in the United States will take place in one of several ways, according to Brian Armstrong, CEO of Coinbase. He mentioned that institutional investors are increasingly joining Coinbase as they want a flight to quality. “There’s a chance we’ll just get a different SEC chair in 2024 or beyond,” the CEO continued.
Brian Armstrong on Crypto Regulation
Brian Armstrong, the CEO of cryptocurrency exchange Coinbase (Nasdaq: COIN), spoke with Yahoo Finance on Friday about a range of subjects, including stablecoins and crypto regulation.
When asked about the timing and type of cryptocurrency legislation in the US, the CEO of Coinbase explained:
It will take place in one of several ways. The courts are thus an option. Regardless of how the case turns out, the courts may be the ones to offer clarity. If the regulators aren’t willing to offer it, case law creation is a method to get there.
“Congress is a different route to take. He emphasized that Congress is currently highly involved in this, pointing out that a few crypto-related measures are being discussed there. They consist of the Clarity for Payment Stablecoins Act and the FIT for the 21st Century Act.
A further point made by Armstrong was that the Commodity Futures Trading Commission (CFTC) “could step up and assert more authority.” He stated:
Additionally, I believe it’s possible that in 2024 or later, the SEC chair may just change.
Gary Gensler, the current head of the U.S. Securities and Exchange Commission (SEC), has come under fire for focusing mostly on enforcement when it comes to regulating the cryptocurrency business. Armstrong pointed out that Coinbase sought to comply, but the SEC has made it impossible to do so, despite Gensler’s repeated requests for crypto trading and lending platforms to come in and register with the regulator.
The CEO of Coinbase offered the following insight into the conditions institutional investors are looking for before making significant investments in cryptocurrencies: “Maybe it’s that blockchain has become more scalable; maybe some regulatory clarity arises; maybe a court case arises. At that time, I believe we’ll start to notice different quantities of capital actually coming in.