Coinbase’s CEO says winning against the SEC was crucial to protecting U.S. crypto, accusing the agency of overreach and political intimidation.
Coinbase CEO Reveals Why Standing Up to the SEC Was Essential
Following the U.S. Securities and Exchange Commission’s (SEC) decision to withdraw its lawsuit against Coinbase, CEO Brian Armstrong addressed the situation, explaining why the company took a stand and prevailed. In a Feb. 21 post on social media platform X, he detailed how the securities regulator had overstepped its authority and why resisting was crucial for the future of the crypto industry.
Challenging the SEC’s actions, Armstrong asserted that the agency had attempted to enforce rules beyond its legal scope. He wrote: “I knew a few truths that helped make it an easy decision to fight them in court.” The executive stressed that the SEC had wrongly insisted Coinbase delist certain crypto assets by misclassifying them as securities, despite the company adhering to strict listing policies. He opined:
The SEC was wrong on the law. They were exceeding the authority given to them by Congress by asking us to delist a number of assets that were not securities.
Criticizing the inconsistency in regulatory decisions, he pointed out that the SEC had approved Coinbase’s public listing after reviewing its business model. He argued that such contradictory enforcement created uncertainty, stating that regulators “can’t make up new laws on the spot if they don’t like the current ones.”
Rejecting the SEC’s demands, Armstrong warned that compliance would have crippled the U.S. crypto industry, forcing companies to relocate overseas. He characterized the legal action as an intimidation tactic fueled by political motives. Expressing concern over regulatory overreach, he cautioned:
If we had caved, it would have dramatically limited the scope of which crypto assets were allowed in the U.S., and pushed the industry further offshore, into the shadows.
Acknowledging the judiciary’s role in checking governmental authority, he emphasized that regulatory overreach nearly stifled an entire sector. Armstrong urged crypto firms to challenge unlawful actions in court, insisting that standing firm was necessary to preserve the industry’s future.
Referencing political shifts, Armstrong attributed increased scrutiny of the SEC to the Trump administration’s electoral victory. He accused SEC Chair Gary Gensler and Senator Elizabeth Warren of advancing an unlawful agenda. Looking ahead, he expressed optimism about regulatory reforms and emphasized the need for clear legislative guidelines, stating:
Now let’s get some crypto legislation passed in the U.S. to finally clarify the rules, and really kick off this next phase of building.
