U.S. Must Embrace Crypto Or Risk Being Left Behind: Coinbase CEO

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

U.S. Must Embrace Crypto Or Risk Being Left Behind: Coinbase CEO
Photo provided by Milken Institute

The U.S. is at risk of being left behind by the world of cryptocurrencies as other countries more quickly embrace digital assets, Coinbase co-founder and CEO Brian Armstrong said Monday.

Speaking at the Milken Institute Global Conference in Beverly Hills, Armstrong noted that China began working on a digital currency back in 2014. But as seen with its tight grip on the nation’s internet, the Chinese government has looked to deploy crypto as a means of control, he added—making it all the more important that democracies allow crypto to flourish freely.

“In the free world, this technology needs to be embraced,” Armstrong said. “It can be regulated to make it safe and trusted. But the democracies in the free world need to embrace this to have some kind of an answer to other countries trying to lock it down.”

The U.S. government’s slow pace in deciding how to regulate crypto was a major theme during Armstrong’s panel with Cathie Wood, the founder and CEO of asset management firm ARK Invest, and Michael Piwowar, executive director of Milken’s Center for Financial Markets. Wood said she “expected more clarity” from regulators by now; the only thing made clear from the federal government so far, she noted, is that cryptocurrencies like Bitcoin are not securities.

“We want our country to do the right thing from a regulatory point of view,” she said. “We enjoyed incredible benefits from the birthing of the internet here. This is just the next generation of the internet, so let's get with the program.”

Investment in the crypto and blockchain space skyrocketed last year to more than $30 billion, up from $5.4 billion in 2020, according to the consultancy KPMG. Myriad sectors have recently delved into crypto, from automakers to entertainment companies. But there’s still plenty of skepticism about the industry—from issues around the environmental cost of mining tokens to concerns about the criminal use of cryptocurrencies.

Although the U.S. has moved slowly, Armstrong said there are signs for optimism. He noted President Joe Biden recently signed an executive order directing federal agencies to come up with a plan to regulate cryptocurrencies. And when Armstrong—who heads one of the largest crypto exchange platforms in the world—heads to Capitol Hill, he’s seeing more “pro-crypto” lawmakers on both sides of the aisle, he said.

“It's actually getting harder and harder to meet a true crypto skeptic in D.C.,” Armstrong said.

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Behind Her Empire: Lisa Sequino on the ‘Light Bulb’ Moment That Launched JLo Beauty

Yasmin Nouri

Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.

Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.

Behind Her Empire: Lisa Sequino on the ‘Light Bulb’ Moment That Launched JLo Beauty
Lisa Sequino

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Henrik Fisker Says Tesla Price Cuts Haven’t Fazed Ocean Rollout

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

A Fisker electric vehicle.​
Courtesy of Fisker

Last week in the dot.LA newsletter I wrote about Tesla’s decision to slash prices by as much as 20% on their vehicles and how the decision might impact Southern California’s EV startups. I called the price cuts a “tough pill to swallow” for Fisker in particular since they would make many of Tesla’s price points more competitive with Fisker’s first production model, The Ocean.

The Ocean is currently undergoing homologation, but Henrik Fisker, the company’s CEO, confirmed to dot.LA that the company hopes the process to be completed at the end of February. From there, it could take several weeks to ship the SUVs from Austria to the United States.

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