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Armstrong says the crypto asset market is here to stay, which is why traditional financial services are becoming part of the blockchain and cryptocurrency industry.
The call for crypto assets to be regulated in the US intensified after the terra luna ust collapse and last year. Already, US investigators are working with senior officials on the FTX and Alameda cases, including former Chairman and Chief Executive Officer Sam Bankman-Fried () and former Director of FTX Engineering Nishad Singh, among others, in detention. Last month, the Securities and Exchange Commission charged Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto assets.
However, it was the pressure against cryptocurrency staking, the altcoin market, and the stablecoins industry which attracted a lot of attention. Earlier last month, cryptocurrency kraken announced the closure of its crypto staking program after it agreed to pay a fine of 30 million dollars to the . The chairman of sec gary gensler indicated that all crypto assets, with bitcoin exception, are unregistered transferable securities.
This is evident from the recent pressure by the New York Financial Services Department (nydfs) which has ordered paxos to stop hitting new binance-supported buses.
Coinbase and its Chief Executive Officer are calling for clear rules on cryptography.
According to Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong, the United States is behind on getting its regulatory act together while the rest of the world embraces crypto technology. In a recent television interview, Armstrong defended the cryptocurrency staking industry, noting that this is not a safety issue. The technological billionaire has declared that the money base is ready to defend the staking industry before a court if the need arises.
Armstrong says the crypto asset market is here to stay, which is why traditional financial services are becoming part of the blockchain and cryptocurrency industry.
'Many traditional finance companies are incorporating this technology,' said Armstrong. "Everyone from JPMorgan, Visa and Mastercard, Franklin Templeton have projects and teams in-house on how to embed cryptography in their departments."
So Armstrong asked the U.S. regulators to update their financial systems to serve everybody as well.
The financial system in the United States doesn't serve everybody equally—time to take stock. @SquawkCNBC@andrewrsorkinhttps://t.co/5arQzSZyw3
— COINBASE (@coinbase) March 1, 2023
He added that most global financial centres, including Singapore, Hong Kong and the EU, already have friendly crypto regulations in place to attract foreign and local investors. Therefore, the technology billionaire said his priority this year would be to advocate for clear cryptography regulations in the United States.
"My first focus this year is the political environment," said Armstrong. 'the rest of the world is in fact adopting cryptography. We have seen all the major financial centres, Singapore, Hong Kong and London, and the EU has just adopted comprehensive legislation on cryptography... We need clear rules for the industry to develop here."
