Coinbase CEO Brian Armstrong has called on the next chair of the U.S. Securities and Exchange Commission (SEC) to apologize to the cryptocurrency sector for what he views as unfavourable treatment under current chair Gary Gensler.
In a post on X, Armstrong criticized ongoing legal actions against digital asset exchanges, including Coinbase and Binance.US, arguing that these cases have harmed the U.S. crypto industry and prompted companies to relocate to more favourable jurisdictions like the UAE, El Salvador, and Hong Kong.
Armstrong acknowledged that while an apology may not fully address the damage done, it could serve as a foundation for rebuilding trust between the SEC and the digital asset industry.
The CEO pointed out inconsistencies in the securities regulator’s classification of cryptocurrencies, highlighting that the agency has classified some digital assets as securities under the Howey test yet contradicted itself in a recent footnote in the XRP case, describing cryptocurrencies as investment contracts instead of securities.
His remarks come amid speculation by Markus Thielen, founder of 10X Research, that SEC Chair Gary Gensler might resign within the first two months of 2025, especially if Donald Trump is re-elected.
The comments also follow Armstrong’s endorsement of John Deaton, a prominent pro-XRP lawyer and Republican candidate from Massachusetts, who criticizes Senator Elizabeth Warren for her anti-crypto stance. Notably, He accused Warren of undermining the crypto industry, particularly through her role in Gensler’s appointment.
Meanwhile, Coinbase has intensified its efforts to achieve regulatory clarity in the U.S. digital asset space. The exchange recently filed multiple Freedom of Information Act (FOIA) requests with the Federal Deposit Insurance Commission (FDIC) to obtain documents regarding any restrictions on U.S. banks’ holdings of digital assets. The exchange has also appealed the SEC’s decision to deny its 2022 rulemaking petition in federal court in September 2024.
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