Coinbase CEO Outlines the Path Forward

What needs to happen for Crypto to move forward from the recent disasters that have shaken the industry?  Coinbase CEO Brian Armstrong recently laid out what he thinks is a “realistic blueprint” for regulating this space, through three main points. 

Create regulatory clarity for centralized actors

The first place that Armstrong felt that should fall under greater scrutiny is to regulate the stablecoin issuers. Next, would be a set of rules for centralized exchanges and custodians that can help prevent bad activity while also preserving innovation. This would require KYC and AML policies and procedures across the board. 

Next, being able to establish which cryptos are commodities and which are securities. The CFTC and SEC have been battling over this issue for years without result. 

Enforce a level playing field

Regulation needs to happen both domestically and internationally without a gap between them, otherwise perceived favoritism will result. 

Armstrong say, “It’s an open secret in the crypto industry that there are still a handful of questionable actors who are not following rules like those above.”

FTX.us was cited as an example, being based in the Bahamas while looking the other way to attract US volume. 

Let innovation happen in decentralized crypto

Once we get away from the centralized players, technology can become a player to help self-regulate the decentralized space, with good self-custody solutions as well as smart contracts. This will eventually lead to on-chain accounting. Eventually, you should be able to see total transparency for any organization built entirely on-chain, which will help self-regulate the bad players from the space.