The United States will determine the “right outcome” for cryptocurrency through legislation, case law, or after the 2024 presidential elections, according to Armstrong.
The CEO of Coinbase, Brian Armstrong, underlined the need for regulatory certainty in the American cryptocurrency market in an interview with The Wall Street Journal. He said that instead than depending on conflicting positions from regulatory bodies, it would be required for Congress or case law to offer the much-needed clarification.
Armstrong emphasized the ongoing rivalry between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), claiming that Coinbase has become embroiled in this power struggle. The regulatory environment has become more complex as a result of the SEC and CFTC’s divergent views on whether cryptocurrencies should be categorized as securities or commodities.
Armstrong emphasized the significance of clarity and urged Congress to intervene by introducing legislation to specify the regulatory framework for cryptocurrencies in light of the lack of agreement between the two agencies. He thinks that for the industry to develop and for enterprises to function with assurance and certainty, a clear legal framework is necessary.
Armstrong aims to eliminate the legislative ambiguity around cryptocurrencies and create a solid platform for innovation and growth in the U.S. crypto economy by promoting congressional action.
Coinbase Token Listing Process and Classification
According to Brian Armstrong, CEO of Coinbase, the exchange is cautious about token listings and rejects about 90% of the assets it examines. Armstrong stressed that each asset placed on the platform is subject to extensive research and documentation as part of the listing process.
Armstrong stated that the exchange “feels” the listed tokens are commodities rather than securities, despite the fact that Coinbase is seeking advice from the Securities and Exchange Commission (SEC) over the classification of tokens. Despite seeking clarification from the SEC, Coinbase did not receive any specific responses, which prompted the exchange to create its own stringent listing procedure.
To guarantee a thorough assessment, Coinbase has created a distinct committee for listing digital assets from Armstrong, which performs legal research and takes into account numerous issues before approving tokens for listing.
Regardless of the outcome, Amstrong thinks that any clarity provided by the courts will be a “step in the right direction.” But he is sure that even if it takes a while, the United States will eventually arrive at the “right outcome.”