While the crypto industry is facing a historic setback, punctuated by losses, security problems and even insider trading, calls for better regulation of the sector have multiplied in recent months. Something the CEO of Coinbase, one of the largest exchanges in the world, calls out loud.
More crypto regulation to save Coinbase?
As pressure mounts everywhere for better regulation of the crypto industry, Brian Armstrong, the CEO of Coinbase, is in favor of more regulation. This would also be beneficial for the activities of his company.
” Somehow, the more regulation for crypto, the better for Coinbase (…) We are more than happy to engage with any regulators around the world who will take the time to meet with us. We don’t see that as a bad thing. On the contrary, we think it’s the best way to help the industry move forward.”he said in connection with the publication of the financial results of the 2e quarter of Coinbase.
Moreover, the official said he was happy to see the progress made recently both in the United States and in several countries of the world, to lead to clearer legislation on cryptos. For information, in the United States, several bills are making their way through Congress and are already receiving strong support from leaders.
This posture of Brian Armstrong is consistent with his desire to put the company he leads, and which is currently shaky, back on track. Indeed, Coinbase recorded a loss of $1.1 billion compared to the second quarter of 2021, a drop of 64%. A result mainly linked to the winter of cryptos.
Recently, numerous scandals have also weakened the company and could, according to analysts, bring it to an end. Coinbase is in the crosshairs of the Securities and Exchange Commission (SEC) and the US Department of Justice for allowing its clients to trade digital assets that should have been registered as securities. The arrest in late July of one of Coinbase’s former directors for insider trading also brought a lot of discredit to the company.
In the midst of turmoil, Coinbase believes that stronger regulation of cryptos will be welcome for its continued development. The company has already asked the regulator, the SEC, to launch a public process to update its regulations to allow for the development of crypto-asset markets and the tokenization of debt and equity markets. She also said she supports the Digital Asset Regulation in Europe (MiCA) project, as well as in many other jurisdictions around the world.
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