Home Coinbase boss Armstrong blasts SEC, calling for crypto apology and change

Coinbase boss Armstrong blasts SEC, calling for crypto apology and change

Coinbase CEO Brian Armstrong has made an impassioned criticism of the U.S. Securities and Exchange Commission (SEC), calling for widespread changes at the government agency.

Armstrong hit out at the uncertainty caused by the SEC due to its inconsistency over crypto regulation, with many companies and representatives left uncertain about compliance requirements. 

This has been a direct impediment to progress for the sector in the States. 

He also stated there should be a shake-up in the leadership of the body, for the next chair of the agency to dismiss “frivolous” cases and even to apologize for the damage caused to the American crypto industry.

In an X post, Armstrong’s address was a takedown of the leadership of the SEC under Chair Gary Gensler, who has dismissed the prospect of digital currency like Bitcoin emerging as a widely used means of payment. 

He went on to state the SEC should drop all cases against digital trading platforms such as Coinbase and Binance, whilst the wider landscape has seen some companies leave the U.S. for more crypto-friendly locations such as the United Arab Emirates (UAE), El Salvador, and Hong Kong. 

A disaster for the whole industry, says Uyeda

His stance was reflected in recent comments made by SEC Commissioner Mark Uyeda who branded the agency’s approach to regulating crypto a “disaster”.

Uyeda cited a lack of clear guidance, going further to question Gensler’s leadership which has supposedly left crypto firms in the dark.

The commissioner was speaking at a Fox Business panel on October 10, deriding the enforcement-first policy, at the expense of effective regulation and defined guidelines that would lead to progress.

The intervention of Coinbase boss Brian Armstrong is timely, as the outcome of the upcoming 2024 U.S. presidential election could have an impact on the direction of crypto legislation and the SEC leadership tasked with overseeing it.

His frustration and ire concentrated on the shifting narratives at the SEC toward digital assets and crypto exchanges, as evidenced over the years. 

In 2018, the SEC effectively stated digital assets like Bitcoin do not qualify as securities, only to reverse that position three years later, claiming they could represent investment contracts.

This year, it was a 180-degree turn when the SEC intimated that digital assets are just a form of computer code, only to reverse that call days later with the reinstatement of the investment contracts definition.

The constant change and reclassification only create ambiguity and hesitancy. It cannot be good for the regulators and as bluntly explained by Armstrong, it is a major hindrance and a force against the U.S. crypto industry.

Image credit: Via Midjourney

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The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

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