Coinbase CEO Brian Armstrong spoke to CNBC’s Arjun Kharpal about how the company is preparing for a court battle with the U.S. Securities and Exchange Commission and his outlook on the crypto markets.

Coinbase CEO Brian Armstrong talks about working with regulators and the need for clear rules. He says the cryptocurrency exchange’s “staking” product shouldn’t be classified as a security amid a broad regulatory crackdown. He speaks to Bloomberg’s Sonali Basak in New York.

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Coinbase CEO Brian Armstrong Criticizes SEC’s Approach to Staking – Here’s What He Said

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Coinbase CEO Brian Armstrong Criticizes SEC’s Approach to Staking – Here’s What He Said.

Coinbase CEO Brian Armstrong has warned that a hostile regulatory approach by the Securities and Exchange Commission could drive the crypto industry outside of the United States. 

In a televised interview with Bloomberg Wednesday, Armstrong said that almost all major financial hubs, including Singapore, Hong Kong, London, and most recently the European Union, have introduced comprehensive crypto legislation, adding that the US should also follow suit if it doesn’t want to lag behind. 

“What I believe should happen in the United States is that we need a clear rulebook so that this industry can be built here. We don’t want it to be like 5G or semiconductors that went offshore. It’s actually a matter of national security we get the future of the financial system built here inside the United States.”

The crypto billionaire also reiterated his position about the SEC’s recent move to consider Kraken’s staking product as a security amid a broad regulatory crackdown, claiming that staking should not be classified as a security. 

“Our staking product is not a security,” he said. “Customers never turn their assets to Coinbase for instance. And we really just are providing a service that passes through those coins to help them participate in staking, which is a decentralized protocol.” 

In regard to the staking product, “we are prepared to defend that in court if we need to,” Armstrong said. “But we are never looking for a fight. We want to work collaboratively with regulators all over the world.”

As reported, the SEC has reached an agreement with crypto exchange Kraken to stop offering staking services or programs to clients in the country.

According to the SEC, Kraken failed “to register the offer and sale of their crypto asset staking-as-a-service program,” which the commission now qualified as securities. Aside from the service’s halt, Kraken agreed to pay $30 million in disgorgement, prejudgment interest, and civil penalties.

In mid-February, Coinbase published a blog post that argued crypto staking is not a security under the US Securities Act, nor under the Howey test. In short, the blog said that crypto staking does not meet any of the four prongs of the Howey test, which is used by the SEC to determine whether an investment contract is a security.

Meanwhile, Armstrong said he does not “have concerns” over the broader stablecoin sector despite the recent regulatory scrutiny around Paxos, a crypto firm that issues Binance’s stablecoin Binance USD (BUSD). He added that he’s “quite bullish” on USD Coin (USDC), which is also a dollar-pegged stablecoin issued by Circle.

Two weeks ago, the New York Department of Financial Services (DFS) ordered Paxos to stop minting BUSD tokens. In a consumer alert, the DFS said it issued the order “as a result of several unresolved issues related to Paxos’ oversight of its relationship with Binance.”

Earlier this week, Coinbase announced the suspension of BUSD trading, saying that the stablecoin does not meet its listing standards.

https://cryptonews.com/news/coinbase-ceo-brian-armstrong-criticizes-secs-approach-staking-heres-what-he-said.htm

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***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT! USE ALTCOIN DAILY AS A STARTING OFF POINT!

This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research.

bitcoin, blockchain, crypto, cryptocurrency, altcoin, investment, ethereum, bitcoin crash, xrp, cardano, ripple

Brian Armstrong is the CEO and Founder of Coinbase. Coinbase started in 2012 as simply a custodial Bitcoin wallet and has grown into the massively successful publicly traded company that we know today.

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✨ DEBRIEF | Unpacking the episode:
https://shows.banklesshq.com/p/debrief-brian-armstrong-coinbase

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✨ COLLECTIBLES | Collect this episode:
https://collectibles.bankless.com/mint

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In this episode, we go over everything you wanted to know from Brian—his reflections on 2022 and his outlook on crypto moving forward. We cover the regulatory situation in America, how SBF infiltrated our halls of power, why Coinbase launched a chain in the worst regulatory environment we’ve ever seen, Wall Street’s understanding of Coinbase, and Brian’s best advice for the settlers and builders sticking around during this crypto winter.

The last time we had Brian on the podcast was in November of 2021. We’ve come such a long way since then…and more recently, he also hopped into a livestream with us in the middle of the FTX collapse last November. It was so good to have him back on, enjoy!

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Topics Covered

0:00 Intro
8:18 Learnings From 2022
13:05 Brian’s Thoughts on SBF
14:37 FTX’s Affect on Coinbase
19:44 Crypto’s Backlash
24:06 SBF’s Sneaky Political Game
28:55 The Optimistic Long Game
32:29 Organizing Voters & Crypto 435
38:50 Staking, Derivatives, & Crypto Securities
43:42 Why U.S. Crypto Regulation is Bad
46:38 Stabelcoins
53:17 Coinbase’s L2 Base
59:28 Coinbase’s Long Game
1:02:38 The Future Products of Base
1:07:25 Coinbase’s NFT Platform
1:10:41 Base Token?!
1:11:22 Does Wall Street Understand $COIN?
1:15:52 5-10 Year Coinbase Vision
1:17:45 Wallet-as-a-Service (WaaS)
1:21:17 One River Acquisition
1:23:55 Decentralizing Coinbase
1:26:00 Crypto in 2030
1:28:20 Were Brians’s Crypto Expectations Met?
1:30:06 Advice to Builders
1:32:34 Closing, Action Items, & Disclaimers

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Resources:

Brian Armstrong
https://twitter.com/brian_armstrong

Coinbase
https://twitter.com/Coinbase

Crypto 435
https://twitter.com/coinbase/status/1630592674020335617

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Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here:
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