Coinbase chief says the SEC has launched a crusade against the crypto industry

\n

The U.S. Congress and other federal bodies such as CFTC have reached a consensus on the need for clear rules for the crypto industry, while the SEC adheres to a different approach. Coinbase CEO Brian Armstrong said this in an interview with CNBC.

\n\n\n\n

U.S. Bank failures made people “look again at crypto” and think about it as an “alternative system,” Coinbase CEO @brian_armstrong tells CNBC’s @Dan_Murphy pic.twitter.com/f18RcgN4nA

— CNBC Middle East (@CNBCMiddleEast) May 8, 2023

\n\n\n\n

“The SEC stands out a little here. It is something of a lonely crusade by Chairman Gensler. For some reason he adheres to views unfriendly to digital assets,” Armstrong said.

\n\n\n\np>According to the executive, the ongoing confrontation with the SEC could remove the lack of clarity regarding the legality of certain aspects of activity.

\n\n\n\n

“I do not think [Gensler] is trying to regulate the industry as much as he is trying to constrain it. He has initiated several lawsuits […], which give Coinbase the opportunity to obtain regulatory clarity in the courts. In our view, this will indeed benefit the crypto industry,” the executive explained.

\n\n\n\n

In March 2023 the Commission sent a notice to the exchange about an investigation into the listing procedure on the platform and its products — Coinbase Prime, Coinbase Wallet and staking service Coinbase Earn.

\n\n\n\n

In April the company responded to the SEC’s claims, stating readiness to “vigorously defend” itself. Company representatives noted that the proceedings could damage the agency’s reputation.

\n\n\n\n

In the same month the company filed a lawsuit to obtain an answer from the SEC to the petition filed in July 2022. The platform sought to clarify crypto industry regulation.

\n\n\n\n

In May Coinbase announced the launch of an international futures exchange for digital assets — Coinbase International Exchange.

\n\n\n\n

Later the platform’s leadership named the UAE as a potential strategic hub.