Coinbase CEO Brian Armstrong calls on ‘both sides’ to address ‘untenable’ regulatory situation – UBJ – United Business Journal

Representing a significant development for the cryptocurrency industry, Coinbase Inc.’s CEO. (NASDAQ:COIN) Brian Armstrong emphasized the critical need for a two-pronged approach to cryptocurrency regulation during a discussion with Ark Invest CEO Cathie Wood. This conversation follows former President Donald Trump’s recent declaration that he is the “crypto president” during a campaign event and his meetings with executives from major Bitcoin mining companies earlier this week.

Wood acknowledged Trump’s polarizing nature, but emphasized a positive aspect of his involvement: His support for cryptocurrency has brought the issue to the attention of those who may not have previously considered it. “Obviously some people see him as divisive,” Wood said, according to DL News. Nevertheless, she noted that Trump’s support “educated those who had not taken a closer look at what this movement was about,” emphasizing the bipartisan nature of the issue.

Armstrong responded to Wood’s comments without directly mentioning Trump, but emphasized that “both sides recognize they need to address this issue,” underscoring the growing importance of cryptocurrency in the country. Throughout the discussion, Armstrong emphasized the importance of bipartisan support for cryptocurrency, noting his recent meetings with up to 13 senators in Washington to discuss the issue. “We need clear rules in the U.S.,” Armstrong said, referring to the current regulatory environment for cryptocurrencies. “The current situation is unsustainable.”

This strategic neutrality by Armstrong reflects a broader campaign by cryptocurrency industry leaders to raise the profile of digital assets as a key national issue. In preparation for the upcoming state and national elections, Armstrong and other influential figures in the crypto industry have pooled significant resources to support pro-crypto candidates.

FairShake PAC, a political action committee founded in December to promote favorable digital asset legislation, has raised nearly $93 million in donations, according to the Federal Election Commission. Prominent donors include the Winklevoss twins, Coinbase, Ripple (CRYPTO: XRP), Marc Andreessen and Ben Horowitz. Additionally, Stand With Crypto, a nonprofit founded by Coinbase last year, launched its own PAC in March to support pro-crypto candidates.

Key industry figures, including Ryan Selkis, CEO of Messari, and David Bailey, head of Bitcoin Warehouse, have publicly supported Trump. This support comes in the context of Trump’s recent overtures to the cryptocurrency community, which is a marked change from his previous critical stance. Just a few years ago, Trump was openly skeptical of Bitcoin and other cryptocurrencies, describing them as “non-monetary” and “air-based.” He maintained this position even after leaving office, as recently as 2021, when he called Bitcoin a “fraud” and warned against the spread of unregulated crypto assets.

However, Trump’s position has evolved significantly, culminating in his recent declaration at the Libertarian Party’s national convention in Washington. There, Trump promised to “stop Joe Biden’s crusade to destroy cryptocurrencies” and promised to ensure that the future of cryptocurrency “will be made in the USA.” He pledged to support the right to self-care for the country’s 50 million cryptocurrency holders and pledged to protect their interests from regulatory overreach.

Trump’s change in stance is seen by the multibillion-dollar cryptocurrency industry as having the potential to create a friendlier regulatory climate in Washington under his leadership. The change comes as the industry faces new regulatory threats from Congress and the SEC, with the Biden administration maintaining a more cautious approach to regulating cryptocurrencies. Biden recently vetoed a resolution backed by the cryptocurrency industry that would have repealed new Securities and Exchange Commission (SEC) guidance on cryptocurrencies. Biden’s message emphasized the need for “appropriate guardrails to protect consumers and investors” to realize the potential benefits of cryptocurrency innovation.

Despite the industry’s growing political involvement and significant financial support, the broader appeal of cryptocurrencies remains somewhat limited. According to a 2023 Pew Research Center survey, only 17% of Americans have ever traded or invested in cryptocurrencies, and three-quarters of those aware of cryptocurrencies expressed a lack of confidence in their security and reliability. However, the study also revealed that cryptocurrency users tend to be younger, male and racially diverse – a key demographic segment that Biden, Trump and Robert F. Kennedy Jr. are competing for.

Trump’s rhetorical shift and the industry’s enthusiastic response suggest a significant shift in the political landscape around cryptocurrency. As the industry mobilizes its resources and influence, key insights and developments will be discussed at Benzinga’s Future of Digital Assets event on November 19. This event will provide a platform for further discussions on the evolving regulatory landscape and the future of digital assets in the US

Brian Morgenstern, head of public policy at Riot Platforms, a Bitcoin mining company with a $3 billion market capitalization, published an article in Bitcoin Magazine after his meeting with Trump, declaring him “a top choice for Bitcoin.” Morgenstern praised Trump’s commitment to protecting the rights of Bitcoin owners and criticized the Biden administration for its perceived hostility towards Bitcoin.

The commitment of major industry players and significant financial support demonstrate a concerted effort to shape the future of digital assets in the US regulatory environment. As the political and regulatory landscape evolves, the cryptocurrency industry’s involvement in the political process will likely play a key role in determining the direction of future policies and regulations.

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