Coinbase CEO Brian Armstrong has taken a position against the SEC. He urges the next SEC Chair to dismiss "frivolous" cases against cryptocurrency startups and publicly apologize to the American people.
In a recent X post, Armstrong criticized the SEC's inconsistent stance on cryptocurrency. He highlighted inconsistent claims about digital assets and regulatory authorities. These inconsistencies have resulted in unwarranted lawsuits against corporations such as Coinbase.
The SEC's stance on digital assets has shifted dramatically. In 2018, they were not securities. By 2021, they had become investment contracts. Now, in 2024, they are "not securities" again. Bitcoin's status has likewise fluctuated. The SEC's power over cryptocurrency exchanges is another source of controversy. Within a year, they have alleged a lack of jurisdiction and congressional oversight. Even their position on securities law clarity has been conflicting.
These shifting views have created industry-wide uncertainty. Many people now advocate for regulatory transparency. Some even demanded SEC Chairman Gensler's dismissal. Republican presidential contender Donald Trump has promised to pursue this if elected.
Armstrong feels that an apology could help restore trust in the SEC. The cryptocurrency sector is looking for more consistent and transparent regulation.
