Coinbase CEO Brian Armstrong Responds to SEC Lawsuit, Highlights Differences with Binance

Coinbase CEO Brian Armstrong responded to the recent lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance, emphasizing the differences between the two companies. Armstrong stated that the suits against the two firms were distinct and highlighted that Coinbase had not been accused of misappropriating customer funds. He also clarified that he had not been personally named in the suit.

According to Armstrong, the complaint against Coinbase primarily revolves around the classification of cryptocurrencies as commodities or securities. He emphasized that Coinbase operates within the United States and has never engaged in activities such as running a hedge fund or trading against its customers. Armstrong further mentioned that all of the company’s financial statements undergo auditing.

While the lawsuits against Coinbase and Binance are separate, there are some similarities, particularly regarding the market structure underlying both platforms, according to Howard Fischer, a partner at Moses Singer.

Armstrong also expressed his satisfaction with Coinbase’s decision to go public, despite the challenges it brings. He acknowledged that being the first in the industry entails facing obstacles, including educating the public and investors, as well as dealing with regulatory bodies like the SEC. However, he affirmed the company’s commitment to leadership in the space.