Highlights from the Pomp Podcast with Coinbase CEO Brian Armstrong
CEO of Coinbase, Brian Armstrong, was recently a guest on the Pomp Podcast and here are some of the highlights of the show.
- Armstrong claims to hold “a ton” of Bitcoin
- Coinbase touts itself as blockchain-agnostic and takes a shot at Binance’s Smart Chain.
- The SEC is the only government agency that refuses to meet with the firm, according on Lance Armstrong.
It’s probably no surprise to you but Armstrong revealed on the podcast that he holds “a ton” of Bitcoin.
According to Brian, the crypto king will be around for a long time because it is similar to gold.
Armstrong, however, doesn’t support crypto tribalism:
“I’m always a little frustrated seeing all the tribalism that is happening online. Twitter is kind of built for conflict and warfare, and I don’t think that it actually represent what the majority of the industry feels.”
He added that Coinbase is working to include support for as many projects as possible, so long as they are legal in a specific jurisdiction, because it is blockchain-agnostic.
He also took a shot at Binance Smart Chain, a blockchain for executing smart contracts that has seen considerable adoption in recent months:
“It seems like 50% or more of the governance tokens, in this case, are controlled by one company — Binance. And it’s even in the name.”
Armstrong went on to say that such centralized blockchains are “pretty dangerous”:
“I do think it would be a bad thing if the majority of these activities started being created on blockchains that are more centralized. I think it’s actually pretty dangerous. So, I hope we will get blockchains built that are decentralized but also scalable.”
Armstrong added that on the matter of how politicians see crypto, there’s a 50/50 split in Washington between those who believe it is dangerous and those who think it offers great potential.:
“You know, 50% of the people I talked to in D.C., roughly, they’re still thinking of crypto as a risk. They think this is scary. This is dangerous. They have all kinds of misconceptions in their head about the percentage of activity that’s for illicit activity.”
According to Armstrong, those rules would be excellent for Coinbase but bad for small firms.:
“Honestly, regulation would be the best thing to ever happen to Coinbase because we are the largest company…We have a huge balance sheet, we have tons of lawyers on staff…The companies that it would harm are smaller crypto startups. It would entrench these companies.”
After receiving a lawsuit warning from the SEC, Coinbase postponed its Lend service.
Brian Armstrong, the CEO of bitcoin exchange Coinbase, claims that the United States Securities and Exchange Commission is the only government agency that has refused to meet with them.
“I reached out to the SEC. I tried to get a meeting with them. They told me that they weren’t meeting with any crypto companies.”
When discussing the SEC’s approach in early April, Armstrong stated: “We’re having difficulties with them,” adding that they had threatened to sue his firm if it launched its USD Coin (USDC) lending program that promised 4% yearly returns.
Despite other businesses already providing similar services, he said the SEC rejected the plan because it was deemed a security but offered no explanation for its conclusion.
Coinbase considered taking the SEC to court, but it determined that it was not worth the time and money., not least because “there’s a lot of deference given to regulators in the court system.”
The organization has now reversed its intentions to launch the initiative and will instead wait until the regulatory climate surrounding crypto lending services becomes more transparent.
Until there are legal precedents, Armstrong predicts that more enforcement actions will be taken.