Coinbase boss calls future SEC chairman accountable over ‘frivolous’ crypto cases.

Coinbase CEO Brian Armstrong has called on the incoming chairman of the US Securities and Exchange Commission (SEC) to address the agency’s perceived inconsistencies in its approach to digital assets.

Armstrong’s criticism stems from the securities regulator’s shifting stance over the years, which has caused frustration in the community.

SEC Contradictions on Crypto

His tweet, which accompanied a compilation of conflicting statements from the SEC on the issue, argued that the new presidency should “drop all frivolous cases and apologize to the American people.” Armstrong laid out several examples of the SEC’s evolving position.

In 2018, the SEC stated that a digital asset “by itself is not a security.” However, in 2021, the regulator declared that a digital asset “embodies” and “represents the investment contract”. This is followed by three contradictory statements in 2024 alone.

For example, in February 2024, the SEC declared that a digital asset is “just computer code.” Then, five days later, he said the digital asset “itself ‘represents the investment contract'”. Finally, eight months later, the SEC declared that the digital asset “is not” the security.

The agency has also been inconsistent in determining whether Bitcoin is considered a security. In 2023, he stated that “(The) SEC has never claimed that (Bitcoin) is a security.” However, in 2024, the agency stated “Maybe ‘(No) there is no answer.'” Notably, just four days later, he took another stand, proclaiming “‘(A) is not a security'”.

The Coinbase CEO’s demand for an apology and withdrawal of the “frivolous cases” reflects a broader sentiment within the community, which has long accused the SEC of overreach and lack of clarity in its regulatory approach. Armstrong believes that restoring confidence in the agency is crucial, as the damage done to the country’s financial landscape cannot be easily undone.

Change of leadership with the upcoming elections

The comments come at a crucial time, with the US presidential election just around the corner. Democrats have developed a reputation for their hostility to cryptocurrency, an approach that many fear could undermine the US dollar’s status as the world’s dominant global reserve asset. Throughout her presidential campaign, Kamala Harris has made very few comments on crypto-related issues.

On the other hand, Donald Trump has managed to win favor with the crypto community this year. Most recently, he pledged to end Gensler’s term on day one if re-elected and vowed to appoint a president who believes America should “build the future, not block the future.”

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!