Coinbase CEO says the SEC risks putting US financial system behind other countries

Quick Take

  • The U.S. is at risk of falling behind the financial systems of other countries if it doesn’t produce clear guidelines for crypto usage, Coinbase CEO Brian Armstrong said.
  • “We’re happy to go to court if that’s what it takes to finally get some case law developed for this industry,” Armstrong said.

Recent actions by the Securities and Exchange Commission is putting U.S. financial leadership at risk, Coinbase CEO Brian Armstrong said during a Twitter live chat on Thursday. 

Compared with countries like the UK, Brazil and Singapore, the U.S is the "farthest behind" in areas such as legislation and banking rails, Armstrong said. If action isn't taken, it could get worse.

The comments came only a day after the SEC issued the crypto exchange a warning notice regarding its staking service, Coinbase Earn and Coinbase Wallet. The recent action by the SEC is part of a slew of regulatory warning shots fired against other crypto firms in the U.S. 

"We should not be subject to regulation by enforcement like this," Armstrong said, adding that his firm's focus is to obtain "clear guidelines."

"In a way we're happy to go to court," he said, "if that's what it takes to finally get some case law developed for this industry." 

Among agencies in the U.S., the SEC has been a "real outlier" in its opposition to crypto, Armstrong said.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.