Coinbase CEO Comments On Congress Move To Pass Crypto Regulations

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Coinbase CEO Comments On Congress Move To Pass Crypto Regulations – Crypto News

Published

5 months ago

February 20, 2025

Dripp

Congress is taking steps toward passing new crypto regulations for the digital assets industry. Coinbase CEO Brian Armstrong has expressed support for the move, calling it a crucial step in securing economic freedoms for Americans.

Armstrong and other Coinbase executives believe that clear legislation will provide a framework for innovation while ensuring consumer protection.

Coinbase CEO Breaks Silence on Congress Move To Pass Crypto Regulations

Coinbase CEO Brian Armstrong has emphasized the need for Congress to establish clear rules for the cryptocurrency industry. These comments come just a few days later since the US SEC asked for a pause in its lawsuit against Coinbase. He stated that passing market structure and stablecoin legislation would protect financial freedoms for Americans.

Brian Armstrong also reiterated that 10% of the global GDP could eventually run on crypto networks, but this requires a supportive policy environment.

Faryar Shirzad, Coinbase’s Chief Policy Officer, echoed this sentiment. He noted that bipartisan lawmakers recognize the potential of blockchain technology and are working on legislation to provide regulatory clarity. Shirzad stressed that protecting four key economic freedoms—building, choosing, participating, and decentralization—is essential for the future of crypto in the U.S.

Key Priorities for Crypto Regulation

Coinbase has outlined several priorities for crypto legislation. The company argues that clear definitions for digital assets, strong investor protections, and support for innovation should be the foundation of new laws. Shirzad explained that Congress must ensure developers can build blockchain networks without unnecessary restrictions while allowing consumers to manage their assets freely.

A major focus is the classification of digital assets. Coinbase supports granting the Commodity Futures Trading Commission (CFTC) oversight of the crypto spot market.

This would clarify which assets are securities and which are commodities, reducing legal uncertainty for businesses and investors. Additionally, Coinbase advocates for clear rules on stablecoins, emphasizing the need for transparency and full asset backing.

The Role of Decentralized Finance and Centralized Entities

Coinbase is also urging lawmakers to protect decentralized finance (DeFi) and digital commerce. DeFi platforms and smart contracts allow users to interact directly without intermediaries. Coinbase argues that overregulation could drive innovation overseas, harming the U.S. economy.

At the same time, the company supports clear rules for centralized crypto platforms that hold customer funds.

Shirzad stated that exchanges should be regulated at the state or federal level to ensure security and consumer confidence. Coinbase believes that balanced regulations can protect users while fostering blockchain innovation.

Congress Faces Pressure to Act Quickly

Lawmakers are under pressure to pass crypto regulations as the industry continues to expand. Coinbase has warned that without clear laws, the U.S. risks losing its competitive edge in blockchain technology. Many developers and businesses have already moved to countries with more favorable regulatory environments.

Shirzad emphasized that Congress has a “historic opportunity” to shape the future of the digital economy.

He noted that while regulatory agencies have taken steps to address crypto-related issues, comprehensive legislation is needed to provide long-term clarity. Coinbase has pledged to continue working with lawmakers to develop policies that benefit both consumers and businesses.