Coinbase CEO Brian Armstrong says ‘the more regulation there is for crypto, the better it is for Coinbase’

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Coin­base CEO Bri­an Arm­strong said on an Aug. 9 earn­ings call that the com­pa­ny is keen to see “com­mon sense frame­works for reg­u­la­tion” next year with­in the Unit­ed States.

Arm­strong said there has been “great progress” for cryp­to reg­u­la­tion over the past year and that “the more reg­u­la­tion there is for cryp­to, the bet­ter it is for Coinbase.”

Coin­base recent­ly received noti­fi­ca­tion that it is being reviewed by the SEC regard­ing assets that may be con­sid­ered secu­ri­ties. The inves­ti­ga­tion was touched upon dur­ing the earn­ings call as Coin­base stat­ed that it wel­comes con­ver­sa­tions that aid investors in under­stand­ing the nature of the assets they hold.

The com­pa­ny not­ed in its Aug. 9 share­hold­ers let­ter that it recent­ly filed a peti­tion to the SEC, ask­ing the reg­u­la­tor to start a pub­lic process to update its reg­u­la­tions to allow for the “devel­op­ment of the cryp­to secu­ri­ties mar­kets and the tok­eniza­tion of the debt and equi­ty markets.”

Coin­base also not­ed that it has engaged with the EU on its Mar­kets in Cryp­to Assets (MiCA) pro­pos­al, along with oth­er juris­dic­tions cre­at­ing a “clear reg­u­la­to­ry regime for crypto.”

Fur­ther, Arm­strong stat­ed that bear mar­kets are “a breath of fresh air” that allow the com­pa­ny to focus on activ­i­ties not pos­si­ble dur­ing a bull mar­ket when it is focused on onboard­ing new users. He also reaf­firmed that this is the first cryp­to “down cycle” for Coin­base as a pub­licly list­ed com­pa­ny, and thus, some investors may be unfa­mil­iar with the cycli­cal nature of the cryp­to industry.

On the call, Coin­base also con­firmed that it is bud­get­ing for a $500 mil­lion loss for the cur­rent bear cycle in order to main­tain prop­er risk management.

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