Coinbase CEO Brian Armstrong predicts how Bitcoin (BTC), Ethereum (ETH), and other currencies will be regulated.

Coinbase CEO Brian Armstrong has a prediction for what the future regulatory landscape for cryptocurrency might look like.

In a new interview on the All-in podcast, Armstrong said that the crypto industry is unlikely to be regulated by the US Securities and Exchange Commission (SEC) just because not all digital assets can be considered security.

This is what I realized. Cryptocurrencies are going to be in a lot of different things.

It will not just be an organizer. Think of cryptocurrencies like bitcoin. It is clearly a commodity. or Ethereum. Many of them are products that products should probably regulate [regulator]or CFTC.

If people want to raise money for their business as a security token, this must be regulated as a guarantee by the Securities and Exchange Commission (SEC). It would be good to have more clarity on this…

Separately, there are also cryptocurrencies that will be currencies like stablecoins and the treasury will probably have to regulate them. Finally, there will be cryptocurrencies that are not of the above. It’s artwork or something that probably shouldn’t even be regulated.

Armstrong says that regulating the crypto industry requires a balance between protecting investors and keeping things open to new innovation within the reach of ordinary people.

We want to strike a balance between protecting the people, but we also want the government not to be in a position to pick winners and losers. Just because something is legal doesn’t mean it’s a good investment…

I think we all want to get rid of fraud, so if you commit fraud, that is, you lied to investors, it must be a crime. I want to work with anyone in the government to make sure that doesn’t happen. The danger is that if we end up in a situation where we say only the rich can invest now because somehow there is a Certified Investor Test. It is exclusive in nature. I don’t like the Certified Investor laws.

If we get to a place where the government says, “You must have XYZ criteria and someone with many years of experience on his resume,” we’re now getting into government designed by a panel to select winners and losers, and that’s inherently flawed because a lot of real breakthrough innovations look like Bad thoughts at first.

This is the kind of thing that a government agency won’t invest in or put money into, so it’s the inherent tension that we have to worry about. We protect the people, but we do not give the government the role of choosing winners and losers. »


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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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