Coinbase CEO Brian Armstrong has called on Congress to pass clear crypto legislation, warning that the US risks losing its status as a financial center. “Crypto is open to everyone in the world and others are leading,” the executive emphasized.
Coinbase CEO on cryptocurrency regulation
Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN) CEO Brian Armstrong has called on Congress to pass clear crypto legislation. He tweeted on Wednesday:
The United States risks losing its status as a financial center in the long term, with no clear rules on cryptocurrencies and a hostile environment from regulators. Congress must act soon to pass clear legislation.
“Crypto is open to everyone in the world and others are leading,” he added, mentioning the EU, the UK and Hong Kong.
In addition to Armstrong, many people have complained that cryptocurrency regulation in the US is unclear, making it difficult for companies to comply. However, US Securities and Exchange Commission (SEC) Chairman Gary Gensler has insisted 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 cryptocurrency industry. Recently, the securities watchdog took action against crypto exchange Kraken for its takeover program. The commission also sent a Notice from Wells to Paxos on the Binance USD (BUSD) stablecoin. On Thursday, he accused Terraform Labs and CEO Do Kwon of defrauding investors.
Coinbase has insisted that its staking services are not securities. Armstrong tweeted on February 12: “Coinbase staking services are not securities. We will be happy to defend this in court if necessary.” Additionally, Coinbase tweeted on Feb. 14:
We do not know what aspects of BUSD might be of interest to the SEC. What we do know: Stablecoins are not securities.
As the US is tightening its regulation on cryptocurrencies, several other jurisdictions are striving to become a cryptocurrency hub, including Singapore, Hong Kong, and South Korea’s second-largest city, Busan.
Kraken CEO Jesse Powell has also called on Congress to pass cryptocurrency legislation after his exchange settled with the SEC and agreed to pay $30 million. “Congress must act to protect the domestic crypto industry and US consumers who will now go abroad for services no longer available in the US,” Powell wrote.
Do you agree with Coinbase CEO Brian Armstrong that the US needs clear crypto regulation or does the country risk losing its status as a financial center? Let us know in the comments section.
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