Coinbase CEO advocates for cryptocurrency regulation to keep the United States as the global financial center

 Coinbase CEO Reverses Stance, Says Cryptocurrency Regulation is Crucial to Maintain US as Financial Center

The cryptocurrency crisis is driving demand for market regulation to weed out fraudulent companies and stabilize the industry. With each passing day, more influential voices are calling for regulation to stabilize the sector and get rid of companies that may be operating fraudulently, as has been suggested with FTX. The CEO of Coinbase has recently joined this trend, marking a reversal in his previous position.

As the crypto winter has inadvertently begun to clean up the industry, it has become apparent that a set of rules may be necessary to complete the process. However, this clashes with the notion of goodness that many have expressed in relation to cryptocurrencies: an idea of decentralization and lack of institutional control.

The inherent characteristics of cryptocurrencies may be impacted by regulation.

Coinbase CEO Calls for Cryptocurrency Regulation

CEO of One of the World's Largest Exchanges Changes Stance, Tweets Support for Cryptocurrency Regulation Just Five Months Later

Text: Brian Armstrong, CEO of one of the world's largest exchanges, has changed his stance and tweeted his support for cryptocurrency regulation just five months after expressing a different opinion. 

 

America risks losing it's status as a financial hub long term, with no clear regs on crypto, and a hostile environment from regulators.

Congress should act soon to pass clear legislation. Crypto is open to everyone in the world and others are leading. The EU, the UK, and now HK. https://t.co/i9WeUZ7K6H

— Brian Armstrong (@brian_armstrong) February 16, 2023

The CEO of Coinbase quotes a tweet announcing the legalization of buying and selling cryptocurrencies in Hong Kong starting June 1, 2023, which is expected to attract large sums of money from the East and the introduction of a stablecoin for Hong Kong.

Meanwhile, the United States has been working on cryptocurrency regulation. In a document published on September 16, 2022, the White House stated, in line with Coinbase's CEO, that digital assets "present potential opportunities to strengthen U.S. leadership in the global financial system.

Executive Order to ensure responsible development of digital assets

The text discussed the Executive Order (EO) issued by President Joe Biden on March 9, 2022, which aimed to ensure the responsible development of digital assets and their underlying technology. The EO was the first-ever comprehensive approach by the government to address the risks and potential benefits of digital assets.

Over the six months preceding the note's publication, the government agencies worked together to develop policy frameworks and recommendations that promote the six key priorities identified in the EO, including consumer and investor protection, promoting financial stability, countering illicit financing, US leadership in the global financial system, financial inclusion, and responsible innovation.

The agencies produced nine reports that articulate a clear framework for the responsible development of digital assets and pave the way for future actions in the US and abroad. The reports encourage the Federal Reserve to continue its ongoing research, experimentation, and evaluation of a central bank digital currency (CBDC) and call for the creation of an interagency working group led by the Treasury to support the Federal Reserve's efforts.