Coinbase CEO Calls on Next SEC Chair to Drop “Frivolous” Lawsuits and Apologize to Americans

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Coinbase CEO Brian Armstrong took a jab at the U.S. Securities and Exchange Commission (SEC) for its actions against the crypto industry. Armstrong called for the next SEC chair to drop what he calls “frivolous” lawsuits, including those against Coinbase, and to apologize to the American people. He believes this step would start rebuilding trust in the SEC, which has faced backlash for its unclear and shifting stance on cryptocurrency.

Armstrong’s Call for Change

Armstrong’s criticism stems from the SEC’s unpredictable and inconsistent handling of crypto regulations, which he believes has harmed both innovation and investor confidence. By calling for the withdrawal of these lawsuits, Armstrong suggests that many of the SEC’s recent cases against crypto companies, including Coinbase, lack solid legal grounding. 

For Armstrong, an apology to the American public would be a crucial step in restoring faith in the SEC as a regulatory body.

Armstrong’s message reflects what many in the crypto world are asking for clear and consistent guidelines. The frequent changes in the SEC’s stance have made it hard for crypto companies to know what’s allowed and not. 

SEC’s Shifting Stance Toward Crypto 

Along with his tweet, Armstrong shared the SEC’s conflicting statements on important issues like whether digital assets are considered securities and if the SEC even has the authority to regulate crypto exchanges. 

For example, in 2018, the SEC said a digital asset “by itself is not a security,” but in 2021, it stated that digital assets could “represent an investment contract.” 

Just recently, the SEC described digital assets as “just computer code.” 

These mixed statements have left the crypto industry unsure about how to follow the rules, adding to the confusion and frustration among crypto businesses and investors.

Trump Promises to Fire SEC Chair 

However, on July 27th former U.S. President and current Republican presidential candidate Donald Trump made a bold promise at the Bitcoin convention that “On day one I will fire Gary Gensler and appoint a new SEC chairman.

Gary Gensler is a controversial figure in the crypto world, with many viewing him as a barrier to crypto growth in the U.S. Meanwhile, he has led several major enforcement actions and filed lawsuits against big crypto exchanges like Coinbase and Binance.