2024 election could play a key role in crypto regulation, says Coinbase CEO

Key takeaways

• Brian Armstrong believes next year’s presidential election could be crucial to the crypto industry’s regulation.

• He pointed out that the crypto industry needs clear regulatory guidelines.

2024’s presidential election will be crucial for the crypto market

Coinbase CEO Brian Armstrong believes that next year’s election in the United States will be crucial to the cryptocurrency industry.

Armstrong made this statement while speaking at a conference in New York on Thursday. He pointed out that the next election could provide increased regulatory clarity for the industry. He stated that;

“Frankly, the 2024 election is also a factor here. It’s kind of politically unpopular to be anti-crypto right now, and we are going to see potentially a change here, whether in administration, parties or the SEC chair.”

The Coinbase CEO also discussed the ongoing lawsuits against Coinbase and its rival exchange, Binance. He stated that;

“As we’ve seen other enforcement actions come down — which, I have to remind people, we’re engaged with the SEC on a civil matter, that’s kind of a technical matter on what is a commodity and what is a security, the courts can help get clarity there. The other issue we’re seeing is different. There are criminal matters. There are allegations of [illegal] trading, commingling of funds, executives and CEOs being named personally. None of that is really an issue at Coinbase.”

Coinbase and Binance still under regulatory pressure

Coinbase and Binance, the two largest cryptocurrency exchanges in the world, are currently under regulatory pressure in the United States.

Earlier this month, the US SEC filed a lawsuit against Binance for allegedly offering services to high-valued US customers on its platform, which is in violation of U.S. securities laws.

The regulatory agency followed that with another lawsuit against Coinbase, claiming that the crypto exchange has never registered as a broker, national securities exchange or clearing agency.

Coinbase and SEC have been in a lengthy dispute after the crypto exchange sued the regulatory agency earlier this year in an attempt to force it to provide new rules for the cryptocurrency industry.