Coinbase CEO Brian Armstrong called on the next chairman of the U.S. Securities and Exchange Commission (SEC) to dismiss the agency’s “frivolous” lawsuits against crypto companies and publicly apologize to of the American people.
In an October 29 article on He acknowledged that while an apology could not repair the damage, it could be a step toward restoring public confidence in the SEC.
He declared:
“This would not cause undue damage to the country, but it would begin the process of restoring confidence in the SEC as an institution.”
SEC Conflicting Position
Under the leadership of Gary Gensler, the SEC has issued conflicting statements on critical issues, including whether digital assets are considered securities and the agency’s regulatory authority over digital asset trading .
Armstrong pointed out that in 2018 the SEC declared that digital assets were not securities, only to contradict itself in 2021 by classifying them as investment contracts. By 2024, the agency had changed its position again, stating that digital assets are “not securities.”
The SEC also made an about-face on the status of Bitcoin. Initially considered non-secure in 2023, the SEC indicated uncertainty, eventually reaffirming its non-secure classification in 2024.
Armstrong expressed other concerns regarding the SEC’s authority over crypto exchanges. In 2021, the SEC claimed that no regulatory body existed for these exchanges. A year later, however, he claimed he had congressional authority to oversee digital asset exchanges.
The SEC’s position on securities law clarity has also been inconsistent. Although it previously argued uncertainty regarding digital assets as securities, the agency argued in 2023 that its regulatory framework, established over the past 90 years, was clear.
These contradictory positions have led to industry-wide confusion and amplified calls for regulatory transparency. Many in the crypto industry have advocated for the removal of SEC Chairman Gensler, a move that Republican presidential candidate Donald Trump has vowed to pursue if elected.
