Coinbase CEO Brian Armstrong didn’t hold back his disappointment over the SEC’s current approach to enforcement, especially under Chairman Gary Gensler. He called out the financial regulator's puzzling and, at times, contradictory stance.
The next SEC chair should withdraw all frivolous cases, and issue an apology to the American people.
— Brian Armstrong (@brian_armstrong) October 29, 2024
It would not undue the damage done to the country, but it would start the process of restoring trust in the SEC as an institution. pic.twitter.com/kWVx73vYMs
Armstrong shared a compilation of the SEC’s mixed messages over the years, questioning its erratic views on whether digital assets like Bitcoin are securities, its authority to regulate crypto exchanges, and if existing laws even provide clear guidance.
He suggested that the next SEC Chair might want to start their tenure with a heartfelt apology to the American people for the damage done to the crypto industry.
He was warmly supported in the comments, with many agreeing that Gansler was the worst SEC chief in history:
Gary Gensler will go down in shame as the worst SEC chair in US history. He will never be respected again in industry and will only find a role in traditional banking where he sold his soul.
— SF Bay = Sports Royalty (@SFSportsAndTech) October 29, 2024
Armstrong has long maintained that crypto transcends politics.
He wrote on his blog:
“The best way to achieve regulatory clarity in democratic countries is to elect pro-crypto candidates from both sides of the aisle and vote out those against it.”
Crypto is non-partisan. Coinbase is non-partisan. It’s time to elect candidates who value crypto over partisan politics. #StandWithCrypto
— Coinbase 🛡️ (@coinbase) June 3, 2024
Learn More→ https://t.co/ojeBKlrPbo
Backing his words with action, he founded a nonprofit group called "Stand with Crypto," which encourages crypto voters to step up and get involved in shaping legislation.
Stand with Crypto – Who Exactly Is This 'Nonpartisan' Group Backing?
Since its launch in August, Stand with Crypto has rallied over 1.8 million supporters and raised more than $180 million through its own political action committee.
Though Armstrong insists the organization is “nonpartisan,” its donations are predominantly flowing to Republican candidates. As the U.S. elections loom, Armstrong has thrown his support behind pro-crypto Senate candidates, including former Bridgewater Associates CEO David McCormick and XRP advocate John Deaton.
On October 20, Armstrong posted on X, endorsing McCormick as the “best crypto candidate” for Pennsylvania. In another post, he cheered on Deaton, who aims to unseat Massachusetts Democrat Senator Elizabeth Warren.
Agreed - Massachusetts residents should vote for @JohnEDeaton1
— Brian Armstrong (@brian_armstrong) October 21, 2024
Crypto holders in MA should realize @SenWarren is the one who got Gary Gensler his job and encouraged him to (unlawfully) try and kill the crypto industry in America. Luckily they did not succeed as we and others… https://t.co/uLcBzIXyTV
He hasn’t been subtle about his opinion on Warren, telling Massachusetts crypto holders she’s the one who “helped seat Gary Gensler as SEC chair.” According to Armstrong, Warren encouraged Gensler’s "unlawful attempt to kill the crypto industry in America.”
Coinbase previously announced a $25 million donation to the pro-crypto super PAC Fairshake.
“Crypto voters won’t be taken seriously until we make it crystal clear to political candidates that being anti-crypto is bad politics.”
Who Could Replace Gensler?
If Trump wins, expect a shake-up at the SEC. He’s been vocal about his discontent with Gensler’s policies and hinted he’d replace him practically on day one.
One strong contender for SEC Chair is Dan Gallagher, a vocal advocate for clearer regulations on digital assets. Currently the Chief Legal Officer at Robinhood, Gallagher would be a “natural choice” for leading the SEC under a Trump administration. He joined Robinhood as CLO in 2020 and served as an SEC Commissioner from 2011 to 2015.
Other names in the running might include former SEC General Counsel Robert Stebbins or Chris Giancarlo, who’s a former CFTC Chair with a pro-innovation stance. Alternatively, Hester Peirce, aka “Crypto Mom,” could step in if a Republican administration takes over.
Whether or not Armstrong’s dream of an SEC overhaul comes true, a change in leadership could bring a new chapter for crypto regulation.
Kataryna Habeliia
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