"The regulatory vacuum must end"...Coinbase CEO urges 'decisive action' on US virtual asset legislation

▲ Stablecoin, cryptocurrency regulation/AI generated image

Analysis suggests that legislative discussions to establish a clear regulatory framework for the US virtual asset industry have reached a critical juncture. In response, the head of Coinbase has strongly urged decisive action from the government.

According to the cryptocurrency specialized media Bitcoinist on April 12 (local time), Brian Armstrong, CEO of Coinbase, reiterated that comprehensive legislation is essential to resolve the confusion in the US virtual asset market. He pointed out that the current regulatory uncertainty is hindering innovation and serving as a reason for major virtual asset companies to move overseas.

Armstrong emphasized that market predictability and stability can only be secured if a clear legal framework led by Congress is established, moving away from the regulatory authorities' ex-post enforcement-centric approach. He specifically noted that in situations where regulatory standards are unclear, both companies and investors are inevitably exposed to uncertainty.

Recently, Coinbase strongly criticized the banking sector's lobbying activities during discussions surrounding the US crypto market structure bill (CLARITY). Armstrong characterized some financial institutions' attempts to restrict stablecoin reward programs as 'regulatory capture,' arguing that this infringes on consumer choice. He stated that traditional financial institutions suppressing innovation to maintain existing profit structures undermines a fair competitive environment.

Supportive moves from political circles are also being detected. US President Donald Trump met with Armstrong in March, mentioning the need for cooperation between the banking and virtual asset industries and expressing a positive stance on the bill's passage. Treasury Secretary Scott Bessent also assessed that the bill has bipartisan support and urged swift legislative action from Congress.

The market anticipates that if the relevant bill passes, institutional investor capital inflow will accelerate, significantly strengthening the virtual asset market's fundamentals. Armstrong maintained his previous forecast that Bitcoin (BTC) could reach $1 million by 2030, and also highly evaluated the growth potential of the asset tokenization market.

As Coinbase has already established partnerships with five of the top 20 global banks and expanded its infrastructure, its growth rate is expected to accelerate further once regulatory clarity is secured.

The direction of US virtual asset legislation is considered a key variable that will determine the digital financial order for the next decade. The industry is increasingly calling for more clear and consistent legal standards to minimize the side effects of the regulatory vacuum and maintain global competitiveness.

*Disclaimer: This article is for investment reference purposes, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*