Coinbase CEO Brian Armstrong recently urged Congress to intervene in the Securities and Exchange Commission’s (SEC) approach to regulating cryptocurrency in the United States. Armstrong’s request highlights his concern over the SEC’s regulatory measures towards cryptocurrency and its potential impact on the industry.
Armstrong stated on Twitter that the United States must keep up with the latest technology to modernize its financial system, and that regulators must play a significant role in developing policies and ensuring compliance. He also emphasized that it is important to establish clear rules before enforcing them, and that Congress will need to intervene at this stage.
Coinbase’s CEO, Armstrong, took the initiative to contact the SEC to encourage action. During his opening remarks at the conference, Armstrong emphasized the high price the United States paid due to the banking regulator’s enforcement-first attitude.
The regulatory body’s actions in the digital economy sector have faced criticism from most U.S. lawmakers. Congressman Tom Emmer is among the leaders who have spoken against the SEC chair, Gary Gensler. Emmer has accused Gensler of being an incompetent cop on the beat and overseeing several major fraud events that shook the industry.
Emmer believes that the SEC’s regulation style lacks flexibility and nuance, which can negatively affect the digital economy sector. Emmer argues that the rigid regulatory framework may drive crypto firms away from the U.S. market
Rep. Warren Davidson (R-OH) plans to present legislation that would replace the Securities and Exchange Commission (SEC) Chairman with an Executive Director who would report directly to the SEC Board.
Davidson believes the Chairman has engaged in a long-standing pattern of inappropriate behavior, and the suggested modifications are an attempt to address this concern. The law also makes it impossible to appoint a previous SEC Chair to the post in the future.
