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FTX Crisis Is ‘Opportunity’ for US to Clarify Crypto Regulations: Coinbase CEO – Decipher

Coinbase founder and CEO Brian Armstrong wants U.S. lawmakers to respond to FTX’s liquidity crisis by stepping up and leading the global race to regulate crypto, according to a new interview with CNBC.

Armstrong said “Coinbase has actually been a big advocate” for regulation in the United States and contrasted its exchange’s approach with that taken by the Bahamas-based “offshore exchange” FTX.

He added that FTX “is not representative of all crypto businesses” and touted Coinbase as having taken a “very different strategy” towards regulatory compliance by obtaining CFTC licenses, money transmission licenses and releasing audited financial statements to the public.

Armstrong also speculated on FTX’s downfall, saying, “[Coinbase doesn’t] invest clients’ funds without their explicit direction”, a charge often made by multiple sources on the operations of FTX, its CEO Sam Bankman-Fried and its sister company Alameda Research.

“It’s a problem,” he continued, before calling on US lawmakers to “put clear regulations in place” because “frankly, the United States is a little behind here.”

Armstrong named Europe, Singapore, Hong Kong and Australia as regions that “have all taken positive steps in this direction,” but said “positive steps” have been taken in the United States with the Digital Products Consumer Protection Act (DCCPA) under development in Congress.

Coinbase and FTX back DCCPA bill

One thing that Brian Armstrong and Sam Bankman-Fried have in common is that they both support the DCCPA, a bill that has proven to be divisive in the crypto industry.

The bill describes how the Commodities Futures Trading Commission (CFTC) regulate the crypto industryas opposed to the other potential regulator, the Securities and Exchange Commission (SEC), with many industry players preferring the CFTC.

The bill was introduced by Senators Debbie Stabenow (D-MI) and John Boozman (R-AR) in August and garnered support for offering an alternative to what many perceived as a regulation-by-application strategy. the SEC.

However, many DCCPA critics described it as “DeFi killing” and have heavily criticized Bankman-Fried and others for supporting him.

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