Coinbase CEO: Binance News is ‘Catalyst’ for US Regulation

Joshua Ramos

The digital asset industry was shocked by the conclusion of a years-long investigation of the world’s largest crypto exchange by trading volume. Subsequently, Coinbase CEO Brian Armstrong has stated his belief that the Binance news could be a catalyst for US regulation.

Indeed, Armstrong posted to X, formerly Twitter, to discuss the massive news. Specifically, he noted the dichotomy in both Binance and Coinbase’s paths toward the top of the crypto industry. Ultimately, he expressed a positive sentiment regarding the impact the news could have on the overarching industry.

Coinbase, Binance Experience Over $1 Billion in Net Outflows Following SEC Lawsuit
Source: Financial Times

Also Read: Binance Founder Released on $175 Million Bond

Coinbase CEO Comments on Binance News and its Potential Impact

What was once a pillar of strength in the digital asset sector is set to be tested over the next several months. Indeed, the crypto exchange is facing a change in leadership as its longtime CEO, Changpeng Zhao, resigned, facing criminal charges. However, it was hit with a $4.3 billion settlement as the resolution to its ongoing criminal investigation with the US Justice Department.

In the wake of that development, Coinbase CEO Brian Armstrong says that the Binance news could end up being a catalyst for US regulation. Specifically, he cross-referenced the differing perspectives that both crypto companies took in their respective rises. Ultimately, he noted the positive effects of Coinbase “doing it the hard way” and ensuring compliance.

Also Read: US Government Files Criminal Charges Against Binance

“Today’s news reinforces that doing it the hard way was the right decision,” Armstrong stated. “We now have an opportunity to start a new chapter for this industry. We took a lot of arrows operating here in the U.S. due to the lack of regulatory clarity, and my hope is that today’s news serves as a catalyst to finally achieve that.”

“Americans should not have to go to offshore, unregulated exchanges to benefit from this technology,” Armstrong added. “The industry should be built right here in America, in a compliant way, under US law.” Thereafter, Armstrong reaffirmed the company’s decision to remain operational in the United States as that regulatory framework is established.