Drop the Lawsuits, Apologize to America: Coinbase CEO SLAMS SEC’s Crypto Approach

Coinbase CEO Brian Armstrong recently criticized the U.S. Securities and Exchange Commission (SEC) for its heavy-handed approach toward the crypto industry. Armstrong called for the next SEC chair to drop what he calls “frivolous” lawsuits, including one against Coinbase itself, and to issue an apology to the American public.

He believes this step would help rebuild trust in the SEC, which has faced mounting criticism for its inconsistent stance on cryptocurrency.

Tensions are escalating. Sit back and get the full ‘download’ here.

Why Is the SEC So Inconsistent?

Armstrong’s criticism stems from the SEC’s unpredictable and inconsistent handling of crypto regulations, which he believes has harmed both innovation and investor confidence. By calling for the withdrawal of these lawsuits, Armstrong suggests that many of the SEC’s recent cases against crypto companies, including Coinbase, lack solid legal grounding. 

For Armstrong, an apology to the American public would be a crucial step in restoring faith in the SEC as a regulatory body.

Clear, Consistent Guidelines – Need of the Hour!

Armstrong’s stance represents a broader demand within the crypto industry: clear and reliable guidelines. The SEC’s frequent changes in position have left crypto companies uncertain about what is allowed, making it challenging to operate within compliance.

In his recent statement, Armstrong highlighted examples of the SEC’s contradictory positions on critical issues, including whether digital assets qualify as securities and whether the SEC even has authority over crypto exchanges.

For instance, in 2018, the SEC stated that a digital asset “by itself is not a security,” but by 2021, it suggested that digital assets could “represent an investment contract.” Most recently, the SEC has referred to digital assets as “just computer code.”

These mixed messages have left crypto companies and investors in a constant state of uncertainty, fueling frustration across the industry.

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Trump Promises to Fire SEC Chair

However, on July 27th former U.S. President and current Republican presidential candidate Donald Trump made a bold promise at the Bitcoin convention that “On day one I will fire Gary Gensler and appoint a new SEC chairman.”

Gary Gensler, the current SEC Chair, is a controversial figure in the crypto world. Many view him as a significant barrier to crypto growth in the U.S., as he has led multiple major enforcement actions, including lawsuits against Coinbase and Binance.

With Armstrong’s calls for change and Trump’s campaign promise, the discussion over the SEC’s role in crypto regulation is heating up. What do you think is coming next?