Armstrong highlighted that 83% of G-20 countries are in the process of implementing cryptocurrency legislation or have already done so.
Coinbase CEO Brian Armstrong appeared on CNBC’s Power Lunch to discuss the company’s international expansion efforts. Armstrong noted that 83% of G-20 countries are in the process of implementing cryptocurrency legislation or have already done so. He emphasized that Coinbase is directing its resources toward these international markets, citing recent launches in Canada and the introduction of an international derivatives exchange.
When asked about the potential disruption of U.S. operations due to regulatory hurdles, Armstrong said, “America is going to do this right.” He also noted that important bills with bipartisan support are currently being reviewed in the House of Representatives, indicating that Congress realizes the need to establish clear rules for the crypto industry.
US Regulatory Landscape and Public Opinion
Armstrong expressed his disappointment with the US Securities and Exchange Commission (SEC) for its lack of a clear regulatory framework for cryptocurrencies. He stressed that this regulatory ambiguity does not reflect the will of the American people.
Armstrong noted that approximately 56 million Americans, or about 1 in 5, have interacted with cryptocurrencies. He used this statistical data to highlight that cryptocurrencies have become commonplace in American society, noting that the number is five times greater than the number of Americans who own electric vehicles.
Armstrong criticized the SEC’s approach of regulating through enforcement actions rather than through a legislative framework. He warned that this lack of clarity has had negative consequences, including crypto companies moving abroad and a decline in US financial and technological leadership.
The Coinbase CEO also claimed that the absence of clear rules has resulted in “terrible things,” such as the explosion of exchanges.
In another vein, during a recent interview with Yahoo Finance, Armstrong said that one-way Coinbase’s dispute with the US financial regulator could be resolved is if another person replaces the agency’s president, Gary Gensler. Armstrong said perhaps this will happen in 2024, either way, it would “certainly help” the exchange in its dispute with the SEC.
Judicial Support and Industrial Equity
Armstrong praised the American judicial system for its role in upholding the rule of law in the crypto industry. He cited a recent court ruling that found the SEC’s actions against Grayscale to be “unlawful” and “arbitrary and capricious.”
Armstrong believes such rulings instill confidence in the industry and emphasizes that the judiciary has been effective in upholding the rule of law in the crypto space.
Bitcoin ETF and Its Impact on Coinbase
Discussing the potential impact of Bitcoin ETFs, Armstrong stated that Coinbase has been named custodian in numerous ETF applications. He believes that the introduction of ETFs will not only bring new capital to the crypto ecosystem but will also be beneficial for both the industry and Coinbase.
Expanding the Crypto Ecosystem
On the topic of business competition and revenue, Armstrong clarified that he has not seen any margin compression in the industry. He highlighted that Coinbase’s main goal is to expand the overall size of the crypto market.
Armstrong sees cryptocurrencies being integrated into all emerging financial services companies, fintech companies, and Web3 platforms and says he doesn’t see them as a competitive threat but rather as a growth opportunity.
By Leonardo Pérez
