Brian Armstrong, CEO of crypto exchange Coinbase, has criticized the US Securities and Exchange Commission’s (SEC) inconsistent regulation of the crypto industry. Armstrong also urged the next SEC chair to apologize to Americans for its treatment of the crypto industry.
Armstrong also called for the next SEC chair to withdraw all lawsuits against crypto firms as part of its restitution measures. The SEC, under Gary Gensler, embarked on several enforcement actions against crypto companies.
However, Armstrong sees the multiple lawsuits as antagonistic to the industry. The Coinbase leader believes the SEC’s approach affected investor confidence in the sector and also stifled innovation.
SEC Makes Inconsistent Statements
Armstrong was specifically unimpressed by the SEC’s inconsistent view of cryptocurrencies. The Coinbase CEO claimed the SEC’s view of some assets as securities created confusion, leading to a huge exodus of crypto firms from the US.
Interestingly, Armstrong, on Tuesday, October 29, shared a compilation of contradictory comments made by the SEC about cryptocurrencies. The document pointed out instances where the SEC backtracked on its comments on cryptocurrencies.
The next SEC chair should withdraw all frivolous cases, and issue an apology to the American people.
It would not undue the damage done to the country, but it would start the process of restoring trust in the SEC as an institution. pic.twitter.com/kWVx73vYMs
— Brian Armstrong (@brian_armstrong) October 29, 2024
For example, the agency had claimed in 2018 that digital assets were not securities but contradicted that comment in 2021. The SEC’s confusing comments spilled into 2024 as the agency moved from describing digital assets as ordinary computer codes to claiming they represented investment contracts.
The US regulator has also voiced mixed opinions about regulating crypto exchanges. In 2021, the SEC denied the need for a regulator of the market. Surprisingly, the SEC established broad authority in 2022. These inconsistencies have left the crypto industry with a lack of clear policies.
Although Armstrong believes an apology will not compensate for the havoc wreaked on the industry, he believes it would help instill confidence in the market. Interestingly, Armstrong isn’t the only one calling for clear policies for the crypto industry. Both executives and enthusiasts believe a clear guideline for the industry will boost adoption and lead to growth.
Trump to Appoint a Crypto-Friendly Chair
Armstrong’s call for an apology comes days before the US election. Many believe the election will play a huge role in deciding the future of digital assets in the US. Some claim a Trump victory would mean a crypto-friendly SEC.
🇺🇸🚨 BREAKING: Trump States On Day One, He Will Fire Gary Gensler. pic.twitter.com/aIdE9Ll9p5
— JAKE (@JakeGagain) July 27, 2024
Interestingly, Trump has expressed plans to fire Gensler if he wins the November elections. Meanwhile, Trump’s rival Kamala Harris appears to have warmed up to crypto and secured the confidence of several crypto executives.
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