In the interview with Bloomberg, Coinbase co-founder and Chief Executive Officer (CEO) Brian Armstrong on the current regulatory approach implemented by the US government. The CEO of a US-based exchange has confirmed that “staking” services should not be registered as a security under the jurisdiction of the Securities and Exchange Commission (SEC), saying:
Customers never turn their assets over to Coinbase, for example. And we really only provide a service that passes these coins to help them participate in staking, which is a decentralized protocol.
Furthermore, the CEO of Coinbase has stated that despite the regulatory action taken by the SEC in the last month after the collapse of FTX, the company maintains a “good relationship” with regulators, not only in the US but also in Europe, Asia, and Canada, where the exchange provides services .
Additionally, Armstrong explained that the crypto industry needs clear rules to stay within regulatory parameters so that customers can be afforded good consumer protection. Armstrong added:
If clear rules are published, we are happy to follow them. And if the rules change, we’re happy to follow them. We want to bring this industry within regulatory parameters so that we have good consumer protection. However, we also want to preserve the potential for innovation.
Coinbase CEO Says Crypto Has the Power to Renew the Financial System
Speaking to Bloomberg, Armstrong revealed the launch of a new testnet for the latest product, “basic“the Ethereum Layer 2 (L2) network, stated that they are “excited” about decentralized finance (DeFi), with many companies looking for ways to integrate crypto into financial services, including major companies such as JP Morgan, Visa, Mastercard, and asset management company Franklin Templeton, according to Coinbase CEO.
Coinbase has launched new services and products in the crypto ecosystem to offer development and growth for services, which Armstrong claimed that the US “should be the center of technology.”
For executives, the future of crypto must be built in the US with a clear regulatory environment that will allow the US financial system to grow.
Armstrong also stated that he is “not worried” about the stablecoin sector of the crypto industry, despite the investigation into Paxos and Binance’s BUSD-branded asset. Armstrong added that he is “quite bullish” on the stablecoin USDC, which peer-to-peer payment technology company Circle, a Coinbase partner, is issuing.
Coinbase has been advocating for the introduction of “modern” regulatory policies for the crypto industry, recently launching a pro-crypto policy campaign in all 435 US congressional districts called “Crypto435.”
The company’s stock, which trades under the ticker COIN, continues to grow amid newly released inflation data, a mid-term win for investors to return to stocks and cryptos. Coinbase shares have increased more than 80% since the start of 2023 and are currently trading at $64 on the Nasdaq Stock Market.
Within seven days. Despite recent growth, COIN stock has been trading sideways and in the red over the past 24 hours, down 0.16%. COIN is trading steady with a loss of 0.25%, targeting the next resistance wall at $68.
Featured images from Unsplash, charts from TradingView.com.