The cryptocurrency exchange Coinbase has been meeting with many regulators to convince them that there should be only one federal regulator in the United States to oversee the crypto industry. CEO Brian Armstrong explained that there are currently a variety of different regulatory agencies in the United States, noting that Coinbase “has 53 regulatory agencies in the United States alone.”
Coinbase wants to establish a regulatory agency in the U.S.
Coinbase, a NASDAQ-listed cryptocurrency exchange, is pushing the United States to have only one crypto regulator.
“We meet with many different regulatory agencies…regularly… I met with the chairman of the SEC last week, chairman [Gary] Gensler, I think it’s very effective,” Coinbase CEO Brian Armstrong said on the company’s third-quarter earnings call last week.
“There are various regulatory agencies in the U.S….there is the CFTC [Commodity Futures Trading Commission], China Securities Regulatory Commission [Securities and Exchange Commission], Treasury. Then, of course, we also have national regulatory agencies in terms of currency transfer licenses and loan licenses,” he added.
Noting that Coinbase provides services to customers in more than 100 countries, Armstrong believes that:
Surprisingly, we at Coinbase have 53 regulatory agencies in one country (the United States).
The CEO continues to refer to the crypto regulatory proposal Coinbase Publish In October.The Digital Asset Policy Proposal (DAPP) recommends the establishment of a single federal regulatory agency in the United States
“It may be under one of the existing regulatory agencies. It is not necessarily a brand new entity, but it is better to integrate it and use it as a way to achieve more innovation in this area,” Armstrong continued. And emphasized that having many regulatory agencies will indeed hurt the start-up space.
“Our goal now is to let our regulators focus on encryption,” Coinbase’s Chief Financial Officer (CFO) Alesia Haas said.
She explained that “this technology is so different” and pointed out that it can eliminate the need for certain traditional financial services. The Chief Financial Officer believes:
We believe that it will be helpful to have a regulatory agency that truly understands the technology and then help introduce new principles of cryptocurrency financial supervision.
Do you agree with Coinbase’s view that there should be only one crypto regulator in the United States? Let us know in the comments section below.
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