Brian Armstrong criticises US approach to cryptocurrency regulation

A tough approach to regulating the cryptocurrency industry is stifling its development, forcing projects and developers to leave the United States, said Brian Armstrong, chief executive of Coinbase.

Regulation by enforcement has a terrible chilling effect, and rhetoric matters — we’ve already seen a huge amount of crypto talent, asset issuers, and startups go offshore.

— Brian Armstrong (@brian_armstrong) September 20, 2022

“The enforcement approach has a terrible chilling effect, and rhetoric matters — we’ve already seen a huge amount of crypto talent, asset issuers, and startups move offshore”, Armstrong wrote.

He said that regulators’ strongest argument is national security.

“The United States has let slip semiconductors and 5G, which are now largely produced abroad. They cannot allow crypto to go offshore,” added Coinbase chief.

Armstrong reminded that his exchange is based in the United States. He pledged to “fight for crypto to be successful here for everyone”.

“This is too important for America and the free world,” the executive emphasised.

Earlier, Coinbase launched an in-app tool that will gauge attitudes toward digital assets among members of the U.S. Congress.

Earlier this month, the White House unveiled a framework for regulating the cryptocurrency industry. It envisages a range of initiatives, including tougher enforcement against providers of services related to digital assets.

Subsequently, Bloomberg reported on the development of a bill to regulate “stablecoins”. In particular, it would introduce a two-year ban on new algorithmic stablecoins such as TerraUSD.

Read ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.