Coinbase CEO Shares His Thought About Potential Regulations on Crypto and DeFi
The CEO of Coinbase, Brian Armstrong, is expressing his opinions on potential regulations for crypto and decentralized finance (DeFi).
Regulatory Clarity for Digital Commodities
Armstrong appreciates Michigan Democrat Debbie Stabenow and Arkansas Republican John Boozman’s efforts to bring clarity to crypto and DeFi regulations.
There has been a push by US Senators for legislation that would allow the Commodity Futures Trading Commission (CFTC) to regulate crypto spot markets through the creation of a new asset class called “digital commodities.”
“Worth stating for the record, DeFi should be protected in any legislation that seeks to regulate centralized exchanges and custodians. Thanks to Debbie Stabenow and John Boozman for trying to get this right,” Armstrong said.
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FTX CEO Sam Bankman-Fried’s efforts to spark discussions on this issue are also appreciated by Armstrong.
The CEO said, “And for what it’s worth, my understanding is Sam Bankman-Fried is aligned with protecting DeFi as well, which is great.”
Recently, Bankman-Fried suggested embracing regulator actions and establishing a standard that all crypto companies should follow until regulators start acting.
“At a high level: a) we need regulatory oversight and customer protection. b) we need to ensure an open, free economy, where peer-to-peer transfers, code, validators, etc. are presumptively free. c) we should establish regulation–and until then standards–to ensure (a/b),” he said.
Crypto Regulation is a National Security Issue
In a statement last month, Armstrong cited various threats to US national security caused by lack of legal certainty in the crypto industry.
“The US missed on semiconductors and 5G which is now largely manufactured offshore. It can’t afford to have cryptocurrency go offshore as well (same for every country, by the way),” he said.
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The CEO stressed that they have already seen a tremendous amount of crypto talent, asset issuers, and startups move offshore due to regulation by enforcement.
“Coinbase is a global company, but we’re based right here in the USA and will fight to make sure crypto succeeds here for everyone. It’s too important to America and the free world,” he explained.
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