- Coinbase CEO Brian Armstrong is confident in the company’s ability to defend its staking product in court.
- Armstrong seeks collaboration with regulators rather than conflict.
- Coinbase aims to reduce dependence on the retail market by introducing new services and products.
Coinbase CEO Brian Armstrong has voiced his concerns over the regulatory crackdown in the cryptocurrency industry, particularly regarding Coinbase’s staking product. Armstrong argues that the staking product should not be categorized as a security, as customers never relinquish their assets to Coinbase. Instead, Coinbase provides a service that enables stake participation.
Despite receiving investigative subpoenas from the Securities and Exchange Commission (SEC), Armstrong remains confident in his company’s ability to defend the stake product in court and is actively working to collaborate with regulators.
Armstrong recently spoke to Bloomberg TV, stating that Coinbase is ready to support and defend the staking products in court. He emphasized that he does not seek conflict between the exchange business and the SEC, but is willing to work with the restrictions in place in the bitcoin sector worldwide.
Following the settlement of the SEC’s battle against the Kraken crypto exchange platform, US watchdogs are now scrutinizing Coinbase to determine whether its staking products meet the required criteria to be legalized in the United States.
In addition to discussing Coinbase’s staking product, Armstrong also addressed the current state of stablecoin rules in the United States. According to Armstrong, the US Congress will determine the regulations on how stablecoins will function in the nation. He proposed that crypto businesses generating stablecoins should have one-to-one asset backing and audited financial documents, ensuring the organizations releasing these are doing a decent job.
To reduce its dependence on the retail market, Coinbase has recently introduced new services and products within its platform. This year, Coinbase shares have increased by 80% after recording a market price decrease of about $557 million and an 85% revenue decrease in the fourth quarter. Coinbase is continuing to evolve and adapt to meet the changing demands of the industry while ensuring compliance with regulatory bodies.