Coinbase CEO Sees 2024 Election Playing a Key Role in Crypto Regulation

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Coinbase CEO Brian Armstrong believes the upcoming US presidential election next year could be a potential turning point for the crypto industry.

Speaking at a conference in New York on Thursday, Armstrong said a recent lawsuit filed against the exchange by the U.S. Securities and Exchange Commission could ultimately provide increased regulatory clarity for the industry as the case is progressing in court.

“Frankly, the 2024 election is also a factor here,” Armstrong added. “It’s kind of politically unpopular to be anti-crypto right now, and we’re going to potentially see a change here, whether it’s in the administration, the parties, or the chairman of the SEC.”

Armstrong also alluded to the SEC lawsuit against rival exchange Binance.

“As we’ve seen other enforcement actions fall that I have to remind people have been engaged with the SEC on a civil matter, it’s kind of a technical question about what is a commodity and what It’s a security, the courts can help get some clarification there,” he said. “The other issue was different. There are criminal cases. There are allegations of [illegal] trading, fund mixing, executives and CEOs being personally appointed. None of that is really a problem at Coinbase.”

Coinbase has been in a long dispute with the SEC, having sued it earlier this year in an attempt to force it to provide new rules for the digital asset industry. The regulator responded with its own lawsuit against the exchange earlier this month, accusing it of violating securities law.

Crypto as a campaign issue

Besides the courts, Coinbase has engaged in a high-profile campaign to build public support for its cause. Last month, the exchange aired a TV ad to confront what it called a “naive view” of digital assets.

There are already signs, indeed, that crypto politics is becoming a campaign issue, especially among the challengers of the main candidates in the race.

Florida Governor Ron DeSantis, the Republican who kicked off his presidential campaign at a Twitter Spaces event with Elon Musk last month, said he would protect bitcoin if elected. On the Democratic side, candidate Robert F. Kennedy Jr. spoke favorably of the world’s largest crypto by market capitalization.

2023 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.

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