Evolution of Regulation in Crypto Markets - w/ Coinbase CEO & Founder

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Regulation in the crypto sector varies depending on the specific services offered, with custodians, brokerages, exchanges, and remittance companies each facing different regulatory requirements. Companies that store customer funds may be regulated like banks if engaging in fractional reserves, while those storing 100% of assets may be treated as money transmitters. The evolving crypto market may see a mix of traditional financial regulations and new approaches to suit decentralized entities. While stablecoins offer ease of access compared to traditional banking, excessive regulation could diminish their value. The regulatory landscape is expected to consolidate under a larger superstructure, potentially impacting crypto companies. Coinbase is adapting to potential future regulations by diversifying its business to include a self-custody wallet regulated more like a software company, poised for innovation in a new regulatory environment.

Brian Armstrong first recognized the potential of cryptocurrencies after witnessing firsthand the tragic consequences of hyperinflation in Argentina. Coinbase, the company he co-founded, aims to provide the primary financial accounts for the crypto economy. Their success in accomplishing this, he says, is due as much to their innovative approach to regulation as it is anything technological.

Brian joined Tyler to discuss how he prevents Coinbase from being run by its lawyers, the value of having a mission statement, what a world with many more crypto billionaires would look like, why the volatility of cryptocurrencies like Bitcoin is more feature than bug, the potential for scalability in Ethereum 2.0, his best guess on the real identity of Satoshi, the biggest obstacle facing new charter cities, the meta rules he’d institute for new Martian colony, the importance of bridging the gap between academics and entrepreneurs, the future of crypto regulation, the benefits of stablecoin for the unbanked, his strongest and weakest interpersonal skill, what he hopes to learn from composing electronic music, and more.

Read a full transcript enhanced with helpful links, or watch the full video.

Recorded January 14th, 2022 Other ways to connect

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