In a bold statement amid regulatory tensions, Coinbase CEO Brian Armstrong criticised the U.S. Securities and Exchange Commission (SEC) for its approach to crypto regulation and called for a drastic shift in leadership. Armstrong suggested that the next SEC chair should issue a formal apology to Americans for what he described as the “damage” caused to the cryptocurrency industry under current regulatory policies.
Armstrong’s critique comes with a detailed compilation he published, highlighting conflicting statements made by the SEC on the status of digital assets. He argues that the SEC’s inconsistent stance has created confusion over whether digital assets, such as Bitcoin, are securities and has muddled the issue of whether the agency has authority over crypto exchanges. Additionally, he contends that current laws lack clarity, making it challenging for crypto companies to navigate the regulatory environment.
With the U.S. midterm elections approaching, Armstrong has voiced support for Senate candidates who have expressed favourable views on crypto. Recently, he endorsed two high-profile Republican candidates: David McCormick, former CEO of Bridgewater Associates and a Senate candidate in Pennsylvania, and pro-XRP attorney John Deaton, who aims to challenge incumbent Democrat Senator Elizabeth Warren of Massachusetts.
Armstrong has openly criticised Senator Warren, suggesting that she was instrumental in SEC Chair Gary Gensler’s appointment and has allegedly influenced Gensler’s regulatory approach toward crypto. In a statement on social media platform X, Armstrong urged Massachusetts voters to recognize that Warren’s actions have contributed to Gensler’s “unlawful attempts to suppress the crypto industry in America.” He further claimed that McCormick represents a stronger choice for pro-crypto policies in Pennsylvania.
Armstrong’s remarks also reflect broader speculation about a potential shift in crypto regulation under a new administration. Former President Donald Trump, who is currently vying for a return to the White House, has openly criticised the SEC’s stance on crypto and has indicated he would remove Gensler from his role if elected. On July 27, Trump committed to replacing Gensler on “day one” of a potential new term, stating he would appoint an SEC chair focused on “building the future, not blocking it.”
Several names have emerged as potential candidates for the SEC chair role under a Trump administration, including Robinhood’s chief legal officer Dan Gallagher, who served as an SEC commissioner from 2011 to 2015. Other potential appointees mentioned include former SEC General Counsel Robert Stebbins, current SEC Commissioner Hester Peirce, and Chris Giancarlo, a former chair of the Commodity Futures Trading Commission known for his pro-crypto stance.
Armstrong’s public critique underscores the ongoing regulatory tension between U.S. government bodies and the cryptocurrency sector. As Coinbase navigates its relationship with the SEC, Armstrong’s remarks reflect a larger push by industry leaders for regulatory frameworks that foster innovation rather than hinder it. For many, Armstrong’s call for a new SEC leadership aligns with the growing demand for a clear, consistent approach to regulating digital assets—an approach that would allow the U.S. to compete globally in the rapidly advancing crypto space.
With the election season underway, the stakes for the future of crypto regulation in the U.S. continue to rise. Armstrong’s endorsement of pro-crypto candidates and calls for a reformulated SEC could influence the outcome of regulatory policies that define the industry’s trajectory in the years to come.
