Coinbase CEO Urges Congress to Pass Clear Crypto Legislation — Warns America Risks Losing Financial Hub Status

Coinbase CEO Brian Armstrong urged Congress to pass clear legislation on cryptocurrencies, warning that the US risks losing its status as a financial powerhouse. “Cryptocurrency is open to everyone in the world, and others are leading,” the head emphasized.

Coinbase CEO on Cryptocurrency Regulation

The CEO of Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN), Brian Armstrong, has urged Congress to pass clear legislation on cryptocurrencies. On Wednesday, he tweeted:

America risks losing its status as a financial center in the long run due to a lack of clear cryptocurrency regulations and a hostile environment from regulators. Congress must act soon to pass clear legislation.

“Cryptocurrency is open to everyone in the world and others are leading the way,” he added, mentioning the EU, the UK and Hong Kong.

Aside from Armstrong, many people have complained that regulation of cryptocurrencies in the US is unclear, making it difficult for companies to comply. However, US Securities and Exchange Commission (SEC) Chairman Gary Gensler insists that the law is clear and that most crypto tokens are securities.

Gensler has been criticized for taking a law enforcement approach to regulating the crypto industry. Recently, the securities watchdog took action against the Kraken crypto exchange due to its takeover program. The commission also sent a Wells notice to Paxos regarding the Binance USD (BUSD) stablecoin. On Thursday, Terraform Labs and CEO Do Kwon were charged with defrauding investors.

Coinbase insists that its staking services are not securities. Armstrong tweeted on February 12: “Coinbase staking services are not securities. We will gladly defend this in court if necessary.” Moreover, on February 14, Coinbase tweeted:

We do not know what aspects of BUSD may be of interest to the SEC. What we know: stablecoins are not securities.

While the US is tightening regulation of cryptocurrencies, several other jurisdictions are aiming to become the hub of cryptocurrencies, including Singapore, Hong Kong and South Korea’s second largest city of Busan.

Kraken CEO Jesse Powell also called on Congress to pass cryptocurrency legislation after his exchange settled with the SEC and agreed to pay $30 million. “Congress must take action to protect the domestic crypto industry and US consumers who will now be moving overseas to receive services no longer available in the US,” Powell wrote.

Do you agree with Coinbase CEO Brian Armstrong that the US needs clear regulation of cryptocurrencies or the country risks losing its status as a financial center? Let us know in the comments below.

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