Coinbase CEO Brian Armstrong says “the more regulation there is for crypto, the better it is for Coinbase.” He revealed an inquiry from the U.S. Securities and Exchange Commission (SEC), noting: “We do not yet know if this inquiry will become a formal investigation.”
Coinbase’s CEO on Crypto Regulation
The CEO of Coinbase Global (Nasdaq: COIN), Brian Armstrong, discussed his company’s performance and cryptocurrency regulation during Coinbase’s Q2 earnings call Tuesday.
Coinbase’s revenue declined almost 64% in the second quarter. It reported a net loss of $1.1 billion, which is almost 64% less than the $1.59 million in net income for the same period last year. “Q2 was a test of durability for crypto companies and a complex quarter overall,” Coinbase said in its latest letter to shareholders.
Regarding cryptocurrency regulation, Armstrong detailed: “We’ve been pleased to see the progress recently both in the U.S. and in countries around the world toward more clear legislation for crypto. In the U.S., there are several bills making their way through Congress with strong bipartisan support.”
He also mentioned President Joe Biden’s executive order on crypto, the EU’s Markets in Crypto-Assets (MiCA) regulation, and “positive developments” in Australia, the U.K., Hong Kong, Brazil, and other markets.
Armstrong said:
It’s sort of strange to say, but … in some ways, the more regulation there is for crypto, the better it is for Coinbase.
“We’re more than happy to engage with any regulators around the world who will take time to meet with us. We don’t see this as a bad thing. On the contrary, we believe it’s the best way to help the industry move forward,” he noted.
Armstrong on SEC’s Alleged Investigation of Coinbase
Addressing recent headlines that the U.S. Securities and Exchange Commission (SEC) may be investigating Coinbase over its cryptocurrency listings, Armstrong revealed that in May the SEC sent Coinbase a “voluntary request for information,” including details of its asset listings process. He emphasized:
This inquiry is still in its preliminary stages.
In an insider trading case, last month the SEC brought against a Coinbase product manager. It stated that nine of the crypto tokens posted on Coinbase constitute securities. According to the Nasdaq, no allegations have been made that Coinbase lists crypto securities.
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