Coinbase CEO Brian Armstrong Outlines “Realistic Blueprint” for Global Crypto Regulation

Brian Armstrong, CEO of Coinbase, has advocated for stronger regulations on centralized crypto players but not for DeFi.

Coinbase CEO Brian Armstrong speaking to a man holding a regulations file

Brian Armstrong, the CEO of Coinbase, America’s biggest cryptocurrency exchange, has released a regulatory framework for global crypto regulation to deal with the aftermath of the FTX collapse.

Armstrong Calls for Stablecoin Regulation

In a blog post published on Tuesday, December 19th, Armstrong addressed his views on cryptocurrency regulation, discussing how regulators can use a “realistic blueprint” to “restore trust” damaged by the FTX collapse.

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According to Armstrong, stablecoins form the foundation of a “new era of innovation in financial services.” Hence, he believes that they should be regulated under standard financial services laws and what “a modern-day Howey Test.”

Armstrong hopes that the implosion of FTX “will be the catalyst we need to finally get new legislation passed.” He adds that regulatory clarity will be a good first step, but called on the agencies to ensure there is a level playing field.

Decentralization Should Be Left Alone

Armstrong has suggested that after stablecoin regulation, regulators target exchanges and custodians where additional transparency and disclosure are needed. He believes significant progress needs to be made in this area next year.

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While Armstrong states that regulating centralized entities is the way forward, he says decentralized finance (DeFi) should be allowed to flourish as their open-source code and smart contracts are “the ultimate form of disclosure.”

On the Flipside

  • For crypto regulation to work, Armstrong says companies, legislators, regulators, and customers from financial markets worldwide must work together.

Why You Should Care

Armstrong argues that regulating cryptos will help restore trust and move the industry forward after the recent FTX collapse.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia