Coinbase CEO Armstrong's Case Against Anti-Crypto Policies for 2024 Election Candidates
Summary:
Coinbase CEO, Brian Armstrong, comments on why being against cryptocurrencies might be a politically ineffective strategy for U.S politicians eyeing 2024 elections. He provides data, which he cites mostly from a Coinbase report, establishing that a substantial share of Americans are invested in and positive about cryptocurrencies. He also emphasizes the rising popularity of crypto advocacy groups. He refers to the Digital Asset Anti-Money Laundering Act, criticizing its aim to impose stringent banking regulations on crypto technology. Armstrong's comments highlight an increasingly emerging gap between advancements in crypto and current financial regulations.
In his recent comments, Coinbase's CEO, Brian Armstrong, stressed how adopting an adversarial approach to crypto could backfire strategically for U.S. politicians strategizing for the 2024 elections. Armstrong, on Dec. 19, released a video where U.S. Senator Roger Marshall confesses to getting input from the American Bankers Association (ABA) in formulating the Digital Asset Anti-Money Laundering Act, informally the "crypto ban" bill. Armstrong proposed a quintet of reasons why a negative stand on crypto is likely to be politically detrimental as the 2024 elections approach.
Referring to his first reason, Armstrong pointed out that crypto assets are owned by 52 million Americans. Secondly, nearly 38% of the younger generation perceives crypto as a vehicle for economic growth. Remarkably, the value of crypto has surged by 90% since the start of the year. Meanwhile, a mere 9% of American subjects express contentment with the current financial system. The final argument from Armstrong referred to the pro-crypto advocacy group, the Stand With Crypto Alliance, a 501(c)(4) organization that aims to increase cryptocurrency awareness among elected officials, pointing out that their supporter base is nearing the 1 million mark.
Several public figures, including Senators Warren and Marshall, are known to be lobbying for top-tier banks and hence are likely to be against cryptocurrencies.
The data that Armstrong presented were not provided with sources, though it seems that the majority of these numbers have been taken from a report published by Coinbase in October 2023. This report is primarily based on surveys that were executed by Morning Consult's polling company during the summer and fall of 2023.
The Digital Asset Anti-Money Laundering Act, initially presented in December 2022, seeks to bring various aspects related to crypto technology, including noncustodial wallets, mining pools, and validators, under the purview of rigorous banking norms in the U.S.
By December 2023, the act had attracted an additional five senators' support, three of whom are part of the Banking Committee. Moreover, this anti-crypto legislation proposed by Senator Warren received endorsement from the Bank Policy Institute (BPI), a U.S. banking advocacy group.
Published At
12/20/2023 12:53:18 PM
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