The CEO of Coinbase, Brian Armstrongexpressed concern about the lack of regulatory clarity in the United States when Fintech Week in London. Speaking with former UK Chancellor George Osborne, Armstrong revealed that the country’s leading cryptocurrency exchange may consider relocating if the US fails to provide the necessary regulatory framework.
Armstrong believes that although the United States has the potential to be an important market for crypto, the current regulatory ambiguity is holding back growth. He underlined the need to establish clearer rules for businesses to operate efficiently, adding that Coinbase may seek to invest more in other parts of the world if the situation does not change.
If we don’t see this regulatory clarity emerging in the United States, we may need to consider investing more elsewhere in the world.
Unstable regulatory framework in the United States: a move to the United Kingdom for Coinbase?
Armstrong compared UK’s regulatory environmentUnited, where the Financial Conduct Authority (FCA) oversees both commodities and securities, to that of the United States, where the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) manage these issues separately. He underlined the conflicting statements from CFTC and SEC executives, making it difficult for companies to navigate the regulatory landscape.
Coinbase has had its share of regulatory difficulties, having received a Wells Notice of the DRY in March. Armstrong said the company had met with the SEC 30 times without receiving feedback on the nature of its business before being notified of the notice.
The CEO highlighted the need for regulators to differentiate the various aspects of the industry of the crypto currencies. He argued that exchanges like Coinbase should be regulated like financial services companies, while decentralized sectors should be treated differently due to the lack of central authority.
Things like Bitcoin, EthereumDeFi and even self custodial wallets should be regulated like a software company or something.
Beyond cryptocurrency, Armstrong also discussed the potential of decentralized identity as a compelling use case for the technology blockchain. He explained that decentralized identity allows individuals to own and control their own information, making them less dependent on centralized systems.
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