Coinbase CEO Brian Armstrong was interviewed by The Wall Street Journal on 1/22, discussing not only the policy changes brought by the Trump administration to the industry, but also the focus on stablecoins and token classifications in crypto legislation, as well as Coinbase's outlook on the future of cryptocurrencies.
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ToggleThe Crypto Longing in the US, Armstrong is Hopeful About the Industry's Future
Just back from the inauguration ceremony of President Donald Trump, Armstrong was impressed by the crypto inauguration party hosted by the current US president. Armstrong said that over the past four years, the crypto industry has faced unfair treatment due to a lack of clear regulations, but now with Trump in office, he believes the industry will see a more friendly regulatory environment.
Coinbase's Regulatory Priorities, Stablecoins and Token Classifications
Armstrong also discussed the key legislative goals, including:
- Token Classifications: Differentiating tokens into securities, commodities, and other types to address the problems that traditional securities laws cannot cover. Armstrong said a "decentralization test" needs to be established, so that when a token reaches a sufficient level of decentralization, it should be treated as a commodity rather than a security.
- Stablecoin Regulations: Armstrong said stablecoins like USDC should have fully reserved cash or short-term US Treasuries as backing, and undergo regular audits to ensure fund safety. He believes stablecoins can improve the efficiency of global cross-border payments while maintaining the US dollar's reserve currency status.
Armstrong pointed out that there are already many bipartisan supporters actively pushing for these regulations, and the legislative process is expected to accelerate in the coming months.
If Tether Fails to Comply with New Regulations, Coinbase Will Delist USDT
According to The Wall Street Journal, Armstrong specifically mentioned that the stablecoin issuer Tether may face greater challenges due to new US legislation. He said that if Tether is unable to comply with the new regulations, Coinbase may delist USDT.
Coinbase currently plans to continue offering USDT trading services, mainly to help users access other crypto assets. Armstrong explained: "Many people hold USDT, and we want to provide solutions for these users, helping them transition to stablecoins or systems that Coinbase considers safer."
Believing that Memecoins Can Find a Future in Innovative Experiments
Regarding the memecoin craze, Armstrong believes this is just a part of the crypto industry and does not need to be completely excluded. He said that many innovations often arise from games or experiments, similar to cat GIFs and animations, and while memecoins may seem like a joke, future trends may be hidden within them. Armstrong emphasized that investors still need to be cautious, but should not completely ignore the innovative role of memecoins in the industry.
Focusing on the Mission, Avoiding Distraction of Attention
Armstrong also shared Coinbase's corporate culture. In 2020, he issued an internal statement announcing that the company would not participate in any social issues unrelated to cryptocurrency business, and would focus on the future development of cryptocurrencies. He admitted that there was constant criticism from both inside and outside at the time, but this decision ultimately proved to make Coinbase more cohesive.
Cryptocurrencies Becoming a Solid Backing for the Traditional Financial System
Armstrong said that cryptocurrencies are not meant to replace traditional finance, but to serve as a backing. He gave the example of the recently launched Bitcoin spot ETF, which not only did not pose a threat to Coinbase, but actually increased cryptocurrency trading volume and collaboration opportunities with other industries. He hopes that the future crypto infrastructure can be fully integrated with traditional financial services to accelerate the modernization of the global financial system.
Risk Warning
Cryptocurrency investment is highly risky, and its price may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please carefully evaluate the risks.
