Coinbase Boss Reveals His Struggle To Face Conflict With SEC

Coinbase CEO Brian Armstrong. (Photo; Doc. MyCryptoParadise)

JAKARTA - Brian Armstrong as the largest crypto exchange CEO in the United States, Coinbase, explained his company's journey before finally stopping in negotiations with the US Securities and Exchange Commission (SEC).

In his latest interview with the Wall Street Journal (WSJ), Armstrong detailed the change in SEC's stance regarding cryptocurrency law enforcement and how the exchange eventually had to face the government in court.

According to Armstrong, before Coinbase was registered with Nasdaq in April 2021, the SEC reviewed its business model and gave the green light for its app.

"Back to 2021, we wanted to be a public company, we explained everything about our business, the assets we listed on our platform, how we were staking. At that time, the SEC allowed us to become a public company," said Brian Armstrong.

However, things are starting to change. One of the first steps Coinbase took in response to regulatory input is the removal of XRP from the exchange. Armstrong stated that, although the court case against Ripple is still ongoing, they want to work closely with regulators and Ripple.

About a year ago, "a completely different attitude began to happen," Armstrong told WSJ. "We got information from the SEC that actually all cryptocurrencies except Bitcoin are securities. And we think within ourselves that it is not our understanding of the law."

This change in SEC's stance sparked tension between Coinbase and the authorities overseeing cryptocurrencies in the United States. Coinbase feels that the SEC is trying to expand the definition of securities in a way that is not in accordance with their understanding.

In his statement, Armstrong also highlighted the need for collaboration between companies and regulators to create legal clarity in the cryptocurrency industry. He mentioned the need for more open dialogue and clearer arrangements for companies to operate effectively.

Despite facing this challenge, Coinbase remains committed to working with regulators and remains operational by complying with applicable regulations. Armstrong hopes that through dialogue and a better understanding, legal certainty will be achieved to encourage sustainable growth in the cryptocurrency ecosystem.

In the coming months, the legal process between Coinbase and the SEC will be in the public spotlight. Many parties will pay attention to the development of this case because it could have an impact on cryptocurrency regulation and acceptance in the United States.

As one of the leading exchanges, Coinbase's fate in dealing with this dispute will also be a reflection of the overall cryptocurrency industry. All parties hope for a mutually beneficial and fair solution for both parties, so that legal clarity can be achieved and the cryptocurrency ecosystem can continue to grow well.