Brian Armstrong, the CEO of Coinbase, recently called on Congress to take action regarding the Securities and Exchange Commission’s (SEC) approach to regulating cryptocurrency in the United States.
On Twitter, Armstrong asserted that modernizing the financial system of the United States requires keeping up with the latest technology and that regulators should play a crucial role in formulating policies and enforcing compliance. He emphasized the need for clear rules to be established before their enforcement, and highlighted that Congress would need to intervene at this stage.
The CEO of Coinbase, Armstrong, proactively contacted the SEC to encourage them to take action. During his conference speech, Armstrong emphasized the exorbitant cost that the United States has borne due to the banking regulator’s enforcement-first approach.
Most U.S. lawmakers have criticized the actions of the regulatory body in the digital economy sector, including Congressman Tom Emmer, who has spoken out against SEC Chair Gary Gensler. Emmer has accused Gensler of overseeing several major fraud events in the industry and being an incompetent cop on the beat.
According to Emmer, the SEC’s regulation style requires more flexibility and nuance, which could negatively impact the digital economy sector. He argues that the rigid regulatory framework may drive crypto firms away from the U.S. market.
To address these concerns, Rep. Warren Davidson (R-OH) plans to introduce legislation replacing the SEC Chairman with an Executive Director reporting directly to the SEC Board. This would bring more flexibility and nuance to the regulatory framework and address the concerns of crypto firms operating in the U.S. market.
Davidson alleges that the Chairman has been engaging in a persistent and inappropriate pattern of behaviour, and the proposed modifications aim to address this issue. Additionally, the law now prohibits the appointment of a former SEC Chair to the position in the future.