Coinbase CEO Hints at Regulatory Changes: What Happens if Republicans Win?
SEC Lawsuit Over Coinbase
In early June, U.S. listed cryptocurrency exchange Coinbase was sued by the Securities and Exchange Commission (SEC) for being an “unregistered broker,” leading to subsequent legal entanglements and a subsequent decline in trade volume and market share.
Armstrong’s Take on Current U.S. Regulation
In a recent exclusive interview with Yahoo Finance, Coinbase CEO Brian Armstrong shared insights on promising sectors within the crypto market and the recent launch of Coinbase’s Layer 2 mainnet, Base. He also voiced his concerns about the unfriendly current U.S. regulatory landscape.
Potential Change in SEC Leadership
Armstrong stressed the crypto industry’s challenge due to a “lack of regulatory clarity.” He noted multiple avenues to address this, including court decisions, congressional actions, and clarity from the Commodity Futures Trading Commission (CFTC).
Further, Armstrong predicted that post the 2024 elections, there might be a new SEC chair. He elaborated:
“If the Republicans defeat President Joe Biden in 2024, Gary Gensler is likely to no longer be the SEC chair, which would “certainly help” the industry.”
While he refrained from endorsing any particular candidate in the upcoming U.S. elections, Armstrong believes that cryptocurrency could become a “hot topic” for the White House race.
Those candidates favoring cryptocurrencies might win over voters viewing technology as a positive disruptor. If the current SEC chair does step down as predicted, it could signal a pivotal moment in the crypto market’s transition from bearish to bullish.
Armstrong’s Vision: Flatcoin and Base
Armstrong expressed his enthusiasm for “Flatcoin,” which he envisions as the next generation of stablecoins, likely tied more to the Consumer Price Index (CPI) or purchasing power.
Last month, he released a video detailing 10 innovative ideas in the crypto space that excite Coinbase the most. He mentioned that many are reluctant to use Bitcoin as currency, and popular fiat-backed stablecoins might be affected by fiat inflation and government seizures.
He believes that Flatcoin, which “tracks the CPI,” could offer a significant leap in crypto’s economic growth.
Regarding Coinbase’s newly launched Layer 2 mainnet, Base, he believes it will enhance Ethereum’s competitiveness by reducing costs and confirmation times. He emphasized:
“The more friction you eliminate, the more payments you get. We’re also heavily investing in our derivatives platform. So, you know, I’ve mentioned international markets and the U.S. market. So, we’ll keep pushing these initiatives.”
Keywords: Coinbase, Brian Armstrong, SEC, Gary Gensler, U.S. regulation, cryptocurrency, 2024 elections, Flatcoin, Base, Ethereum, Yahoo Finance
