Regulation
Coinbase CEO Comments On Congress Move To Pass Crypto Regulations
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.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Coinbase says the SEC has agreed to dismiss its lawsuit against the US-based crypto exchange.
- The SEC sued Coinbase in 2023 but with Gary Gensler’s exit, the regulator is eyeing better regulatory approach.
US-based crypto exchange Coinbase is set for a landmark development after the Securities and Exchange Commission reportedly agreed to dismiss its own lawsuit against the exchange.
Coinbase announced the huge news in a blog post on Friday, Feb. 21. Coinbase CEO Brian Armstrong also shared the development in an interview with CNBC’s Squawk Box.
“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong,” Coinbase chief legal officer Paul Grewal wrote.
Coinbase CEO Brian Armstrong also shared the news via X.
Great news!
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we’re told to expect next week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
SEC vs. Coinbase ending
According to the exchange, the regulator’s decision to withdraw the case follows a settlement that does not involve any financial penalty against Coinbase. The next move is for the SEC commissioners to ratify the agreement and end a major legal hurdle that set the US crypto market back.
“While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset,” Grewal added.
The SEC filed its lawsuit against Coinbase in 2023, accusing the exchange of operating an unregistered securities exchange. The lawsuit also included allegations of offering unregistered securities.
Coinbase contested the charges and sought a dismissal, with industry players criticizing then SEC Chair Gary Gensler of overreach amid regulation by enforcement approach.Notably, the SEC had also sued Binance, the world’s largest crypto exchange by trading volume. Other exchanges to come into the “rogue” agency’s cross-hairs is Kraken.
However, things at the securities watchdog have taken a crypto-friendly turn since Donald Trump’s election and the exit of Gensler and other Commissioners.
Acting chair Mark Uyeda has formed a crypto task force and renamed an enforcement unit amid the quest to balance compliance and the need to protect investors.
Coinbase has revealed that the US SEC has agreed to drop the long-running legal battle against the top crypto exchange. The agreement to drop the Coinbase lawsuit represents a massive development in the Commission’s move to create a regulatory-friendly environment for the crypto industry.
US SEC To Drop Coinbase Lawsuit
In a press release, Coinbase revealed that the US SEC staff has agreed in principle to dismiss its “unlawful enforcement” case against the crypto exchange, subject to Commissioner approval. The top crypto exchange highlighted how this agreement to drop the Coinbase lawsuit rights a “major wrong.”
Coinbase noted that it has always maintained that it was right on the facts and the law and that today’s announcement confirms that the US SEC should have never filed this case in the first place.
Coinbase’s Chief Legal Officer Paul Grewal said this is a victory not just for the exchange but for customers, the United States, and individual freedom. The Commission, under former SEC Chair Gary Gensler, had sued the exchange in 2023, accusing the firm of offering unregistered securities on its trading platform.
Meanwhile, to ensure that “a rogue regulator cannot weaponize the lack of clarity again,” Coinbase stated that the US Congress must pass legislation that provides the long-term certainty needed for the country to lead in the crypto industry. The exchange added that clarity will bring new inflows of capital into the US, update the country’s financial system so consumers can pay lower fees, and help create economic freedom for all.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- The SEC has renamed its Division of Enforcement’s Crypto Assets and Cyber Unit (CACU) to the Cyber and Emerging Technologies Unit (CETU).
- CETU’s focus will be, among other things, to combat crypto fraud and cybercrime.
The US Securities and Exchange Commission has unveiled a new Division of Enforcement unit that will focus on combating crypto-related fraud and cybercrime.
SEC announced the new unit’s formation on Feb. 20.
In a press release, the SEC said it had created the Cyber and Emerging Technologies Unit (CETU). Its task will be to fight cyber-related crimes within the burgeoning emerging technologies space.
SEC’s new unit to complement crypto task force
CETU replaces the SEC’s Crypto Assets and Cyber Unit (CACU). Its core work will be to handle compliance with a view to protecting retail investors.
Laura D’Allaird will lead the CETU team of about 30 fraud specialists and attorneys, the regulator announced. The press release also noted these specialists and attorneys will come from across several SEC offices.
SEC’s acting chair Mark T. Uyeda said the unit is set to complement the effort of the agency’s recently launched Crypto Task Force. Announced in January 2015, the task force is led by Commissioner Hester Peirce.
Uyeda noted that CETU’s work will “allow the SEC to deploy enforcement resources judiciously.”
He added:
“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
Priority areas for the new unit will include fraud committed via crypto, blockchain, AI and Machine Learning, social media, the dark web, or fake websites. Hackers will also be on the radar of the new unit, as will be incidents involving takeover of retail brokerage accounts.
The SEC is also empowering the enforcement unit to look into non-compliance with cybersecurity regulations.
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