Airdrop Army

Coinbase’s top boss, Brian Armstrong, is fed up with what he calls the SEC’s “inconsistent” and “punitive” stance on crypto. On X, Armstrong took a bold step, urging the next SEC chair to back off and own up. He wants them to yank what he calls “frivolous cases” and, astonishingly, issue a public apology to the American people. According to Armstrong, this is the only way the SEC can begin to earn back some trust.

“The next SEC chair should withdraw all frivolous cases,” Armstrong posted, “and issue an apology to the American people.” He’s clear it won’t undo the harm already done, but he believes it’s a first step.

Mixed Messages from the SEC Fuel Crypto Chaos

Armstrong shared a table to illustrate his frustrations, pointing out the SEC’s track record of shifting positions. Back in 2018, the agency said a digital asset wasn’t necessarily a security. But in 2021, it called digital assets “investment contracts,” only to turn around in 2024 and dub them “computer code.” This game of regulatory whiplash hasn’t helped. Just last year, the SEC assured everyone that Bitcoin wasn’t a security; fast forward, and now it’s cagey about its stance, keeping businesses in what Armstrong calls “regulatory limbo.”

With such muddled messaging, crypto companies like Coinbase struggle to get straight answers. It’s a guessing game that Armstrong says is blocking innovation.

The Legal Tug-of-War: SEC vs. Coinbase

This isn’t just talk for Armstrong. In June 2023, the SEC went after Coinbase, accusing it of acting as an unregistered securities broker and pushing digital assets that it deems securities. Coinbase clapped back, saying they’ve tried to play by the rules, but the SEC has offered only a “regulate by enforcement” strategy, leaving companies guessing.

Congress in the Hot Seat: Armstrong’s Call to Action

Armstrong wants Congress to jump in, saying the current regulatory setup doesn’t suit digital assets at all. He warns that if things don’t change, innovation will find friendlier shores abroad. For Armstrong, it’s not just a fight with the SEC; it’s a battle to keep the U.S. competitive in the global crypto arena.