Coinbase CEO Brian Armstrong Says Next SEC Chair Should Apologize For The 'Damage Done To The Country' By 'Frivolous' Lawsuits

Coinbase Inc. COIN CEO Brian Armstrong on Tuesday expressed that the next head of the U.S. Securities and Exchange Commission (SEC) should issue a public apology to Americans for the harm the agency has inflicted on the crypto sector.

What Happened: Armstrong highlighted a series of conflicting statements made by the SEC over the years, criticizing the agency's inconsistent positions on matters such as whether digital assets, including Bitcoin BTC/USD, qualify as securities, and if the SEC has the authority to regulate crypto exchanges.

Armstrong argued that the SEC’s approach has caused confusion and undermined trust in regulatory clarity for digital assets.

Armstrong proposed that the incoming SEC chair should not only apologize but also drop the "frivolous" lawsuits against crypto companies.

While acknowledging that these steps may not fully undo the harm, he suggested they would be a necessary first step toward rebuilding public confidence in governmental institutions.

In addition to his regulatory critiques, Armstrong has endorsed pro-crypto candidates in the upcoming Senate elections.

Among his endorsements are David McCormick, former CEO of Bridgewater Associates, and John Deaton, a prominent pro-XRP XRP/USD lawyer.

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Armstrong shared his support for McCormick on Oct. 20 via X, calling him "the better candidate on crypto" for Pennsylvania residents.

He also backed Deaton, who is campaigning to replace Massachusetts Senator Elizabeth Warren (D-Mass.), a vocal critic of the crypto industry.

Armstrong emphasized that Warren played a pivotal role in securing SEC Chair Gary Gensler's appointment, alleging that she supported Gensler's efforts to suppress crypto innovation in the U.S.

However, despite his Senate endorsements, Armstrong has yet to endorse any presidential candidate.

Meanwhile, former President Donald Trump, a potential candidate in the next election, has previously promised to dismiss Gensler on his first day in office if reelected.

Trump has stated he would seek an SEC chair who supports innovation rather than obstructing it.

What’s Next: These evolving regulatory discussions and potential leadership shifts are expected to be central themes at Benzinga’s upcoming Future of Digital Assets event on Nov. 19, where industry experts will examine the impact of government policy on the crypto landscape.

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