Coinbase CEO

Coinbase CEO Brian Armstrong said decentralization and open-sourcing AI is a better alternative to regulating the space.

Brian Armstrong, the CEO of crypto exchange Coinbase, expressed his stance on artificial intelligence (AI) regulation in a recent post on the social media platform X (formerly Twitter). 

On Sept. 23, Armstrong explained that he believes that AI should not be regulated. According to the Coinbase CEO, the AI space needs to develop as soon as possible because of reasons such as national security. In addition, Armstrong also noted that despite the best intentions of regulators, regulation “has unintended consequences,” arguing that it kills innovation and competition.

Count me as someone who believes AI should not be regulated

We need to make progress on it as fast as possible for many reasons (including national security). And the track record on regulation is that it has unintended consequences and kills competition/innovation, despite best…

— Brian Armstrong ️ (@brian_armstrong) September 22, 2023

The Coinbase executive cited the internet as an example. Armstrong believes there was a “golden age of innovation” on the internet and software because it was not regulated. The Coinbase CEO suggested the same should be applied to AI technology. 

Furthermore, Armstrong also presented an alternative to regulation in terms of protecting the AI space. According to the executive, it would be better to “decentralize it and open source it to let the cat out of the bag.”

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Meanwhile, various jurisdictions across the globe have either started to regulate AI or express concerns about its potential effects. On Aug. 15, China’s provisional guidelines for AI activity and management came into effect. The regulations were published on July 10 and were a joint effort between six of the country’s government agencies. This is the first set of AI rules implemented within the country amid the recent AI boom.

In the United Kingdom, the competition regulator studied AI in order to identify its potential impact on competition and consumers. On Sept. 18, the U.K.’s Competition and Markets Authority concluded that while AI has the potential to change people’s work and lives, the changes may happen too fast and could have a significant impact on competition.

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Brian Armstrong said that voting yes to the bill would protect innovation and national security in the United States.

Coinbase CEO Brian Armstrong has urged United States citizens to take action and email their representatives to vote “yes” on the Financial Innovation and Technology for the 21 Century Act (FIT21), which may provide regulatory clarity for crypto. 

On July 26, lawmakers voted in favor of FIT21 and the Blockchain Regulatory Certainty Act. The bills are expected to deliver clarity for crypto firms, including setting the differences in jurisdiction between securities and commodities regulators in the country.

In a tweet, Armstrong said that as the voting will continue the next day, Americans have the ability to urge their representatives to vote “yes” to FIT21. According to the Coinbase CEO, the bill would still evolve during the legislative process. However, the Coinbase CEO believes that this is a vote that would protect Americans’ digital assets, innovation and national security.

Important action you can take to protect the value of your crypto in America:

Today, two House committees started voting to take an important step on legislation that will create regulatory clarity for crypto. They will continue tomorrow. The bill will evolve during the…

— Brian Armstrong ️ (@brian_armstrong) July 27, 2023

Furthermore, Coinbase said that apart from protecting consumers and strengthening national security, it also has the potential to “promote job opportunities” in the country. This suggests that U.S.-based crypto companies looking at other jurisdictions may decide to keep their businesses within the country and continue to employ local talent. 

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Earlier this year, various crypto companies decided to test out different areas of the world that may be a good fit amid the regulatory uncertainty in the US. On May 8, Armstrong visited the United Arab Emirates to test its potential as a strategic hub for Coinbase. On May 26, crypto exchange Gemini picked Ireland as a headquarters for its European operations amid what industry observers dubbed as a "war on crypto" happening in the US.

Despite the difficulties in the US, Coinbase continued its efforts to engage with U.S. regulators throughout the year. On Feb 13, the Coinbase CEO invited regulators to chat about crypto and get ice cream in Washington D.C. On July 19, Armstrong reportedly met with members of Congress behind closed doors to discuss digital asset legislation.

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