Coinbase’s CEO stated that he was prepared to defend the company in court, even if it meant moving to the US High Court.
Brian Armstrong, CEO of Coinbase, defended the company against a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in back-to-back interviews conducted on a recent Wednesday.
Armstrong argued that the absence of clear regulations for the cryptocurrency industry in the United States was the root of the problem. In addition, he emphasized his willingness to pursue the case to the U.S. Supreme Court if necessary.
Brian Armstrong Readies Himself For Legal Conflict
Armstrong stated confidently, “I think we’re going to be fine in court,” after noting that the California-based Coinbase company has more than $5 billion on its balance sheet to sustain operations and cover legal costs.
In addition, he expressed his willingness to endure a potentially lengthy legal procedure by stating, “Even if this takes some time, that’s fine.”
Armstrong also sought to emphasize the relatively small proportion of assets mentioned in the SEC complaint, given that Coinbase trades over 200 cryptocurrencies on its platform. According to the crypto billionaire, only 13 of those listed on the platform were classified as securities. Armstrong continued to defend the company’s position by stating, “A relatively small portion of the assets we trade.”
Armstrong distinguishes Coinbase from Binance.
In addition, Armstrong made a distinction between Coinbase and rival cryptocurrency exchange Binance, which is also facing separate litigation from the SEC. While Binance and its CEO Changpeng Zhao have been accused of misappropriating customer funds and willful violation of U.S. regulations, Armstrong noted that Coinbase had not faced similar allegations, nor was he named in the lawsuit, unlike Zhao.
“The complaint in the Coinbase case is primarily a classification issue,” Armstrong explained. “Do you classify these as commodities or securities?” He emphasized Coinbase’s compliance with regulations and transparency, saying, “We’re headquartered in the United States. We have never operated a hedge fund or any other entity that trades against our customers. Every one of our financial statements has been audited.”
Tuesday, the SEC filed charges against Coinbase, alleging the company acted as an unregistered broker, exchange, and clearing agency while facilitating the sale of securities. This occurred just one day after the agency filed a lawsuit against the largest crypto exchange in the world, Binance.
The 2024 presidential elections will center on Cryptocurrency.
Armstrong addressed the ongoing political developments surrounding cryptocurrencies. He predicted that crypto would be a popular topic during the 2024 presidential elections, emphasizing its potential impact on the political landscape.
As the legal battle between Coinbase and the SEC progressively unfolds, Armstrong opines that the case could provide much-needed clarity on regulatory frameworks, thereby influencing the future of the rapidly evolving digital asset space. At the time of writing, the price of Coinbase (COIN) shares was $52.87, representing a gain of 2.36 percent over the previous day.
