Brian Armstrong, CEO of Coinbase, which has now regained the title of the world’s second largest cryptocurrency exchange, answered the curious questions in the Bloomberg broadcast where he was a guest. The famous CEO explained his thoughts on whether the bankruptcy of FTX will cause excessive regulation in the crypto money industry:
“I think the FTX crash is a black mark for the entire industry. However, of course, it was not an event that represented the entire industry. As for the regulation issue, I don’t think such an outcome would be bad. Coinbase has been calling for clear regulations for a long time. I think that recent events will be a trigger in this sense and we will now have clear rules in the USA. I think this is a good thing for both Coinbase and the entire cryptocurrency industry.”
Brian Armstrong says that the FTX bankruptcy has delayed the implementation of cryptocurrency legislation, but he believes something will be done within the next year. In addition, Armstrong answered the question of which side he would choose as a regulator between the CFTC or the SEC:
“There are many different types of cryptocurrencies on the market. Some of them are commodities and should be regulated by the CFTC. The SEC should regulate crypto assets that are securities. So different regulators will be appropriate for different sides of the crypto economy.”
Armstrong also claimed that they were very different from the bankrupt company, saying that they never issued their own coins as FTX did, nor did they use their own market maker. Brian Armstrong said the company’s revenue this year will likely be cut in half or more than its 2021 sales figure.