Coinbase CEO believes the US will eventually find the right outcome for crypto.

The CEO of the cryptocurrency exchange Coinbase, Brian Armstrong, stated that it is not difficult to regulate cryptocurrency and he is confident that the United States will achieve regulatory clarity in due time. Armstrong gave an interview to The Wall Street Journal on June 11, just a few days after the US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase on June 6. The SEC alleges that Coinbase has been operating as a securities exchange, broker-dealer, and clearing house without registering with the commission.

Full WSJ interview on YouTube

— Brian Armstrong ️ (@brian_armstrong) June 10, 2023

During the interview, Armstrong addressed the lawsuit and explained that he believes the registrations were not required for Coinbase to operate.

“The assets that we do trade, those are commodities, so they don’t require those registrations […] we are trading on our exchange crypto commodities.”

Although Armstrong did not claim that Coinbase is a broker-dealer, he mentioned that the exchange had faced difficulties activating a license.

On regulation, Armstrong explained that it is not difficult and the US will achieve the right outcome, even if it takes some time. He highlighted that the SEC vs. Coinbase lawsuit is important for the US cryptocurrency industry as a whole, and he hopes it will lead to more clarity and prevent the country from falling behind the rest of the world. Armstrong thinks that once there are clear and stable regulations regarding cryptocurrency in the US, it will encourage the return of crypto businesses to the country.

“We will see entrepreneurs who left the US come back. They’ll say we won’t be attacked randomly or have incredibly high legal bills at any given moment.”

Armstrong also highlighted key regulation points that he believes need to be clarified, including clear boundaries between the two major United States financial regulators: the SEC and the Commodity Futures Trading Commission. He pointed out that while other countries, such as the United Kingdom, have one financial regulator, the US is currently seeing a turf war between two regulatory bodies. He believes that several fundamental regulations can simply be transferred from traditional finance, such as basic consumer protection, financial statement audit requirements, and procedures for both Anti-Money Laundering and Know Your Customer.

Armstrong reiterated that there is currently no clear rule book for cryptocurrency regulations in the US, and despite continuously asking the SEC for more clarity, Coinbase couldn’t get any feedback. This comes after Armstrong responded to the SEC lawsuit against Coinbase over Twitter on June 7, saying he is proud to represent the industry in court and get some clarity around crypto rules.