By Coinbase CEO Sees Binance Settlement as Chance for Industry Renewal
Coinbase CEO, Brian Armstrong says the Binance settlement is a chance for the industry to prioritize compliance and rule clarity to prevent regulators from slamming huge fines on companies.
Armstrong wrote on X (Twitter) shortly after Binance’s settlement with the Department of Justice (DOJ) was announced explaining the need for rule compliance and Coinbase roadmap since 2012.
Since the founding of Coinbase back in 2012 we have taken a long-term view. I knew we needed to embrace compliance to become a generational company that stood the test of time. We got the licenses, hired the compliance and legal teams, and made it clear our brand was about trust…
— Brian Armstrong 🛡️ (@brian_armstrong) November 21, 2023
To become a generational company, transparency, and a full compliance regime are key, noting how the exchange got legal teams to ensure strict adherence to rules.
“… (We) made it clear our brand was about trust with our customers and following the rules. We wanted to increase transparency and raise the bar on trust, so we became a public company in 2021.”
Rulemaking: Crypto’s decisive factor
In a recent interview with Bloomberg, the CEO stated Coinbase couldn’t move as quickly as others in terms of expansion and onboarding new products in the markets due to the complaint approach stressing that it was the right decision.
Armstrong also charged regulators to make the proper rules for the sector to flourish in the United States rather than the persistent court cases and sanctions levied on multiple projects. He added that Americans should but have to look elsewhere to get benefits from crypto through unregistered exchanges because the US democratic economy should always get it right.
“We now have an opportunity to start a new chapter for this industry. We took a lot of arrows operating here in the U.S. due to the lack of regulatory clarity, and my hope is that today’s news serves as a catalyst to finally achieve that.”
In recent months, Coinbase has led the push for rule clarity in U.S. courts and in Congress following the renewed regulatory onslaught on the market. The Securities and Exchange Commission (SEC) filed charges against the company for acting as an unregistered broker of securities which it has denied with promises to defend itself vigorously.
Armstrong is big on the industry’s growth
Armstrong was positive either way the case swung as it would get the needed rule clarity while calling on other participants to focus on getting the needed industry rules. A new CoinGecko report shows Coinbase as the market leader in terms of lobbying efforts in Washington.
Which company leads crypto lobbying in the US? 🇺🇸
Our study shows that @Coinbase, @Binance, @krakenfx and @Ripple, which have been caught in the SEC’s recent crackdown on crypto, all rank among the top 10 lobbying spenders in 2023.
Read the full study: https://t.co/XejwvzgHFv pic.twitter.com/kgjF0gAiwe
— CoinGecko (@coingecko) November 21, 2023
Despite this, the exchange is keen on a larger global expansion, recently choosing Ireland as its European hub and signaling a wider reach to newly regulated markets in multiple continents.
Asked if he will consider acquiring Binance’s assets, he said it may not be necessary because Coinbase has the required technology and is focused on expansion. The CEO backed the industry downplaying talks of 1% of crypto being used for fraud comparing it to 4% of the US Dollar deployed for illegal activities.
Finally, he praised the sector’s growth over the years stressing key markets as more users adopt the technology to control their digital data, gain economic freedom, web3, etc.
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