Cryptocurrencies

Coinbase CEO urges new SEC chair to drop cases and apologise

Article Image

Coinbase CEO Brian Armstrong has called for the next U.S. Securities and Exchange Commission (SEC) chair to adopt a different stance on crypto regulation. 

In a post on social media platform X, Armstrong urged the new leadership to abandon what he described as “frivolous cases” and apologise to the public. 

He stated, “The next SEC chair should withdraw all frivolous cases, and issue an apology to the American people. It would not undo the damage done to the country, but it would start the process of restoring trust in the SEC as an institution.” 

Armstrong’s remarks reflect a growing sense of frustration within the crypto sector over what he perceives as the SEC’s inconsistent approach to regulation. 

He shared a table in his post to illustrate the SEC’s conflicting statements. 

For example, in 2018, the agency suggested that a digital asset “all by itself is not a security,” yet by 2021, it described digital assets as "embodying investment contracts." 

In 2024, the SEC referred to digital assets as “computer code” while simultaneously affirming their status as securities. 

Armstrong argued these varying positions leave companies in a state of regulatory uncertainty and hinder innovation. 

Tensions between Coinbase and the SEC escalated in June 2023 when the regulator filed a lawsuit against the exchange, alleging it was operating as an unregistered securities broker. 

The SEC contends that several digital assets offered on Coinbase qualify as securities, which the platform has been listing without the necessary registration. 

Coinbase countered by asserting it had sought clarity from the SEC but received minimal guidance, criticising the agency’s strategy as "regulate by enforcement." 

Armstrong also urged lawmakers to lead on crypto legislation, arguing, “The existing regulatory framework was not designed for digital assets.” 

He cautioned that the SEC’s current approach could drive innovation out of the United States if left unaddressed.

Disclaimer

Grafa is not a financial advisor. You should seek independent, legal, financial, taxation or other advice that relates to your unique circumstances. Grafa is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on the information provided directly or indirectly by use of this platform.

Publisher
Grafa