Coinbase CEO Brian Armstrong warned that the United States risks losing its status as a financial hub and called on Congress to pass a clear crypto bill.” The executive stressed that “crypto is open to everyone in the world and others are leading the way.
Coinbase CEO on cryptocurrency regulation
Brian Armstrong, CEO of Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN), called on Congress to pass a clear crypto bill. He tweeted Wednesday.
The US is in danger of losing its position as a financial hub in the long term in a hostile environment from regulators without clear regulation on crypto. Congress should act immediately to pass clear legislation.
“Crypto is open to everyone in the world, and others are taking the lead.” He added, referring to the EU, the UK, and Hong Kong.
In addition to Armstrong, many others have complained that the lack of clear crypto regulations in the US makes it difficult for companies to comply. However, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), insists that the law is clear and that most crypto tokens are securities.
Gensler has been criticized for taking an enforcement-centric approach to regulating the crypto industry. Recently, the Securities and Exchange Commission took action against crypto exchange Kraken regarding its take-up program. The commission also sent a Wells Notice to Paxos regarding the stablecoin Binance USD (BUSD). On Thursday, it charged Terraform Labs and CEO Do Kwon with defrauding investors.
Coinbase claims its staking service is not a security. Armstrong tweeted on February 12, “Coinbase staking services are not securities. I will gladly defend this in court if necessary.” Additionally, Coinbase tweeted on February 14:
We do not know what aspects of BUSD may be of interest to the SEC. What we do know: stablecoins are not securities.
While the U.S. tightens its regulations on crypto, several other jurisdictions are striving to become cryptocurrency hubs, including Singapore, Hong Kong, and South Korea’s second-largest city, Busan.
Kraken CEO Jesse Powell also called on Congress to pass legislation on cryptocurrencies after his exchange settled with the SEC and agreed to pay $30 million.” Congress must act to protect the domestic crypto industry and U.S. consumers who will now have to go abroad to obtain services that are no longer available in the U.S.,” Powell wrote.
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