Coinbase CEO Brian Armstrong believes that decentralized protocols are transparent by default and do not need to be regulated, unlike centralized platforms.
Brian Armstrong, CEO of cryptocurrency exchange Coinbase, said that stricter rules should be introduced regarding centralized cryptocurrency platforms. At the same time, decentralized protocols should be allowed to breathe as open source and smart contracts are the ultimate form of information disclosure.
At the same time, according to Armstrong, regulators could help the industry regain confidence in it and continue to develop. However, decentralized platforms don’t need this as there are no intermediaries involved – transparency is built into such ecosystems by default, so they should be left alone.
Centralized protocols, on the other hand, need constant transparency and disclosure checks because they are managed by certain people. Armstrong expressed hope that the collapse of the FTX crypto exchange will serve as an impetus for passing relevant laws – stablecoin issuers, centralized crypto exchanges and cryptocurrency banks pose the greatest risk.
According to the head of Coinbase, the US needs to start by regulating stablecoins in line with financial services laws. Issuers must meet basic cybersecurity standards and establish a blacklisting process to comply with sanctions, says Armstrong.
Earlier, Armstrong criticized the statement of the former head of FTX Sam Bankman-Fried that the cause of the collapse of the exchange was an accounting error of $ 8 billion. In his opinion, the funds were stolen.
Source: Bits
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