‘The SEC Has Caused Untold Harm To America’: Coinbase CEO

• Coinbase CEO, Brian Armstrong, spent an entire day in Washington DC discussing crypto regulation with Congress members.
• Armstrong highlighted the need for regulatory clarity in the US for centralized players in the cryptocurrency industry.
• Armstrong expressed disappointment over the SEC’s policy of regulation by enforcement and lack of prior feedback.

Coinbase CEO Brian Armstrong tweeted on April 21, that he spend an entire day in Washington DC discussing crypto regulation with Congress members.

Armstrong highlighted the need for regulatory clarity in the United States concerning centralized players in the cryptocurrency industry for various reasons, including consumer protection, national security, and economic growth. Furthermore, he added,

The SEC has caused untold harm to America with its policy of regulation by enforcement. We will fight to fix that.

Last month, Coinbase received a Wells Notice from regulators indicating that they were contemplating taking enforcement action against the exchange for potentially breaching US securities laws.

However, in a recent interview with CNBC, Armstrong stated that Coinbase was not given any prior indication of any issue before receiving the Wells Notice. He went on to explain that despite having around 30 meetings with regulators over the past year, they did not receive any feedback on how to improve or operate differently. Armstrong expressed his disappointment over the situation, emphasizing that the arrival of the Wells Notice without any prior indication of an issue was unfortunate.

Moreover, Armstrong believes that the SEC did not meet its responsibility to establish clear standards for the market. Therefore, he thinks that resorting to the court’s decision is necessary to obtain the needed clarity.

He also argues that the regulator’s job is to publish a clear rulebook, ensure market safety, and promote growth in the industry. However, the Coinbase CEO believes that the SEC has abdicated its responsibility by failing to provide clear guidelines for the industry. Consequently, he feels that seeking clarity through the court’s decision has become the only viable option.

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