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The CEO of Coinbase said that most of the cryptocurrency companies are registered in other jurisdictions, so they will not be strictly regulated.
Brian Armstrong has spoken out about calls for tighter regulation of American cryptocurrency companies amid the FTX liquidity crisis.According to the businessman, tightening would not make sense, since due to the lack of clarity in regulation, most companies are based offshore.
In this way, Armstrong responded to Senator Elizabeth Warren, who said that the collapse of FTX demonstrated that much of the cryptocurrency industry is a dummy.A member of the highest house of Congress is sure that the crypto industry needs strict regulation and it willcontinue to insist that the Securities and Exchange Commission (SEC) enforce the law to protect consumers and financial stability.
Armstrong believes that the SEC is unlikely to be able to deal with the problem, since the regulatorThe SEC has so far been able to clarify the regulation, which forced companies to go offshore.It makes no sense to punish U.S. companies for this, Armstrong said.
Previously head of the American trading platformCoinbase stated that the situation with the possible default of FTX, the FTT token and Alameda Research is serious, but assured that nothing threatens the users of its crypto exchange.
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