Coinbase CEO Brian Armstrong said on an Aug. 9 earnings call that the company is keen to see “common sense frameworks for regulation” next year within the United States.
Armstrong said there has been “great progress” for crypto regulation over the past year and that “the more regulation there is for crypto, the better it is for Coinbase.”
Coinbase recently received notification that it is being reviewed by the SEC regarding assets that may be considered securities. The investigation was touched upon during the earnings call as Coinbase stated that it welcomes conversations that aid investors in understanding the nature of the assets they hold.
The company noted in its Aug. 9 shareholders letter that it recently filed a petition to the SEC, asking the regulator to start a public process to update its regulations to allow for the “development of the crypto securities markets and the tokenization of the debt and equity markets.”
Coinbase also noted that it has engaged with the EU on its Markets in Crypto Assets (MiCA) proposal, along with other jurisdictions creating a “clear regulatory regime for crypto.”
Further, Armstrong stated that bear markets are “a breath of fresh air” that allow the company to focus on activities not possible during a bull market when it is focused on onboarding new users. He also reaffirmed that this is the first crypto “down cycle” for Coinbase as a publicly listed company, and thus, some investors may be unfamiliar when the cyclical nature of the crypto industry.
On the call, Coinbase also confirmed that it is budgeting for a $500 million loss for the current bear cycle in order to maintain proper risk management.
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