Coinbase CEO Signals the Need for Sensible Crypto Regulations

• Brian Armstrong commented that the US is squandering its lead crypto position.
• The Coinbase CEO attributed the US crypto’s falling condition to SBF’s fraud charges.
• Armstrong added that only the introduction of sensible regulations could help the nation recover from the crisis.

Brian Armstrong, an American business executive and CEO of the leading crypto exchange Coinbase, in response to an article that addressed the enduring crypto winter in the US, commented that the nation is “squandering” the early crypto lead. Armstrong further claimed that the US’ losing crypto precedence has been partially a consequence of the allegations of fraud against Sam Bankman Fried, the ill-famed CEO of the crypto firm FTX.

In a recent tweet, the Coinbase CEO shared his perspectives on the fall of the US in crypto:

The billionaire argued that the SBF’s alleged malpractices had a major impact on the US crypto industry as a whole. The debacle of the once-prominent crypto exchange immersed the whole crypto community in panic, being suspicious of the sector’s security.

Pointing towards the stringent rules and scrutiny that the US crypto regulators have imposed on digital currencies and exchanges, Armstrong opinionated, “SBF embarrassed some politicians and regulators who now want to look tough on crypto”. He added that the FTX crash has not impacted any other countries including UK or UAE, as it affected the USA.

The Coinbase CEO’s tweet was in response to an article released by The Japan Times, which focused on the crypto turmoil in the US becoming a “boon for Japan”. The article reiterated that the US crypto turmoil began with the FTX fall, which forced the US Securities and Exchange Commission (SEC) to introduce austere scrutiny over the crypto space.

Nonetheless, as per the article, Japan does not expect such regulatory restrictions in the country’s crypto economy but envisages a positive impact from the US downturn. Noriyuki Hirosue, Head of Bitbank, a Tokyo-based crypto firm, asserted, “The U.S. regulators are increasingly tightening controls, but that doesn’t mean the same things will happen in Japan”.

Armstrong further pointed out that the solution to the prolonged crisis is to introduce “sensible” regulations, to protect consumers. Yesterday, the executive shared his concerns over the country’s decline in economic freedom and the role of cryptocurrencies in increasing it.