According to the CEO of major cryptocurrency exchange Coinbase. Several authorities will have to oversee the crypto industry, he states in a recent podcast interview.
He predicts that the regulation of cryptocurrencies would not be by the United States Securities and Exchange Commission (SEC) alone.
According to Armstrong, cryptocurrencies regulation are unlikely to be the sole prerogative of the SEC.
“Here’s what I’m starting to realize. Many people want a clearer explanation. Crypto will be many things for many people. It won’t just be one regulator doing it.
He notes that if individuals want to raise funds as security tokens, they could be subject to regulation as such by the SEC. However, Armstrong feels that the SEC requires further clarification as regards what constitutes security in the cryptocurrency industry.
The need for several regulators
We have stablecoins that connects to fiat currencies, in addition to the regular cryptocurrencies. Stablecoins, according to Armstrong, the regulation of such coins should be by a separate organization. He says:
“Also, there are some cryptos that are actual stablecoins, and the Treasury should regulate them. Lastly, there are cryptocurrencies that are none of the above. They’re artwork or something; their regulation is quite doubtful.
According to Coinbase’s CEO, the authorities must strike a balance between safeguarding investors and allowing for crypto innovation. He adds,
“Regulators have this important assignment to ensure investors protection and enabling the growth of cryptocurrencies.
“We want to strike a balance between safeguarding individuals and ensuring that the government does not become a selector of winners and losers,” he explains. “That something is legit does not make it an appealing investment.”
Coinbase’s CEO Brian Armstrong states, that the company strongly commits to working with regulatory bodies; to eliminate fraud and scams in the cryptocurrency industry.
He desires that government intervention should not hinder investors from entering the market. He remarks, “We don’t want them [the authorities] to make it hard for regular people.”
“I’m trying to work with anybody in government to make sure those things don’t happen again.
The danger is that if we ever get to a point where we say only rich people can invest. Because of some accredited investor test, it will be exclusive. I don’t like the accredited investor rules.”
“With the explosive growth of the cryptocurrency industry in recent years, Coinbase CEO Brian Armstrong recognizes the need for strict regulatory oversight; to prevent fraud and scams.
He feels that government regulations should not discourage investors from participating in crypto trading.
Coinbase is a publicly-traded corporation based in the United States and is one of the most valuable cryptocurrency exchanges by market capitalization.
As such, Armstrong is in a proper position to offer insights into the future of crypto regulations and how they may impact the average investor.
According to Armstrong, there will likely be several different regulatory bodies in regulating cryptocurrency exchanges going forward.
This includes national regulators like the SEC; and international organizations like the G20, which recently called for increased monitoring of crypto markets.
Regardless of these challenges, Armstrong is very positive about the future of crypto investing.
As the popularity of cryptocurrencies continues to grow; so too is the need for regulation. Many believe that Coinbase, one of the largest cryptocurrency exchanges in the world, will be at the forefront of this regulatory push.
The issue of crypto regulation has been gathering storms of late, there have been arguments for and against it. It will be interesting to know where you stand!