Exchange of cryptocurrencies Coinbase has been engaging with a number of authorities in an attempt to persuade them that the crypto industry in the United States should be overseen by a single federal regulator. Currently, there are a number of various authorities in the United States, according to CEO Brian Armstrong, who said that Coinbase has “53 regulators in just one country, the United States.”
Coinbase, a Nasdaq-listed cryptocurrency exchange, is advocating for the United States to have only one cryptocurrency regulator.
“We’ve met with a variety of regulators out there… on a regular basis… “I had a meeting last week with the chairman of the SEC, Chair [Gary] Gensler, which I believe was quite fruitful,” Coinbase CEO Brian Armstrong said last week during the company’s third-quarter earnings call.
“There’s a variety of different regulators in the United States … There’s the CFTC [Commodity Futures Trading Commission], the SEC [Securities and Exchange Commission], the Treasury. And then, of course, we have state regulators as well on money transmission licenses and lending licenses,” he added.
Armstrong observed, noting that Coinbase services clients in over 100 countries:
It’s kind of amazing that we, Coinbase, have 53 regulators in just one country, the United States.
The CEO then made a reference to Coinbase’s crypto regulation proposal, which was released in October. The Digital Asset Policy Proposal (DAPP) proposes a single federal regulator in the United States.
“It might be beneath one of the current regulators.” It doesn’t have to be a fully new institution, but it would be wonderful to condense it a little and leverage that as a means to promote more innovation in this field,” Armstrong stated, noting that having too many regulators hurts entrepreneurs in the space.
“Our goal right now is to get our regulator focused on crypto,” said Alesia Haas, Coinbase’s chief financial officer (CFO).
She stated that “technology is just so different,” and that it has the potential to remove the need for certain traditional financial services. According to the CFO:
We think that having a single regulator, who really deeply understands the technology and then helps bring what the new principles for financial regulation in crypto look like, will be helpful.