Based on the responses from Armstrong and other crypto executives and decision-makers regarding regulations, it is clear many of them do not seem to understand that they are providing regulated services in a non-compliant manner. In the specific case to which Armstrong reacted before the facts were in, the SEC charged Kraken because it was paying interest on deposit accounts. That is a regulated activity that the SEC provides certain exemptions for, e.g., banks don’t have to register with the commission to pay interest on a savings account; it is certainly not the case that crypto companies are exempted from registering for paying interest to depositors just because the deposits are in crypto, as Brian Armstrong seems to assume.
Crypto CEOs Like Coinbase’s Brian Armstrong Need to Accept That Existing Regulations Also Apply to Them
