Coinbase (COIN) Takes the Lead with SEC... 'Banks Shot Themselves in the Foot'

▲ Bitcoin (BTC) regulation/ChatGPT generated image

The U.S. cryptocurrency market structure bill, which had been pushed for years with hundreds of millions of dollars invested, was shipwrecked in the Senate. However, driven by regulatory authorities' independent rule-making and market innovation, the virtual asset ecosystem has embarked on an even more robust growth trajectory.

In an episode aired on September 17 (local time), Scott Melker, host of the crypto podcast The Wolf Of All Streets, highlighted an interview with Brian Armstrong, CEO of Coinbase (COIN), shedding light on the background of the congressional legislative failure, the role of regulatory authorities, and future market outlook. CEO Armstrong stated, "The essence that led to the bill's rejection was not market structure or consumer protection content, but partisan conflict surrounding public official ethics clauses." He explained that while the White House offered significant concessions, such as banning token issuance by elected officials like U.S. President Donald Trump and accepting blind trusts, Democrats rejected them, leading to the procedural vote being defeated 49 to 50.

While congressional legislation has stalled, executive regulatory bodies are moving quickly. CEO Armstrong noted that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have immediately begun drafting their own regulations using their existing authority. SEC Chairman Paul Atkins is pushing for innovation exemptions for the introduction of tokenized stocks, and CFTC Chairman Mike Selig has also pledged to quickly establish regulations. The analysis suggests that regulations finalized through the Administrative Procedure Act will form legal precedents, possessing continuity that cannot be easily overturned by subsequent administrations.

Regarding the checks from traditional banking, the industry's position has actually strengthened. Large banks opposed the legislation to block stablecoin reward payments, but with the bill's failure, the GENIUS stablecoin regulatory framework, which was already on the verge of taking effect, has been maintained. Coinbase can continue to legally offer stablecoin rewards without restrictions, and it is pointed out that the banking sector itself made a self-defeating move, slowing its entry into digital assets.

The financial market's structural improvement is also accelerating. Through its Abu Dhabi hub, Coinbase introduced tokenized stocks that are redeemable 1:1 with actual securities and guarantee dividend and voting rights, recording approximately $1 billion in trading volume within weeks of launch. Furthermore, it is expanding its agent financial infrastructure, supporting micro-payments between AI agents through the Base blockchain, USDC, and the X42 protocol developed under the Linux Foundation.

CEO Armstrong diagnosed that Bitcoin (BTC) has bottomed out around $60,000, following a historical cycle of approximately one year of adjustment after the halving. With Bitcoin's status elevated to the point where the U.S. government holds it as a strategic reserve asset, he projected that Bitcoin has the potential to reach $300,000 to $400,000 by 2030.

[Article Key Summary]

-Brian Armstrong, CEO of Coinbase (COIN), stated that the U.S. crypto market structure bill was rejected due to partisan ethical conflicts.

-The regulatory environment, including tokenized stocks and 24-hour derivatives trading, is rapidly opening up as the SEC and CFTC embark on independent rule-making.

-Bitcoin (BTC) has passed its bottom at the $60,000 level and is analyzed to have the potential to reach up to $400,000 by 2030.

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