Coinbase CEO supported Treasury’s shift in Crypto regulations, urging the crackdown on crimes that protect innovation, privacy and freedom of speech without punishing open source technologies.
From Coinbase to Treasury: Smash Cryptocurrency without killing innovation
Brian Armstrong, CEO of Crypto Exchange Coinbase (NASDAQ:COIN), has approved the US Treasury decision to reverse sanctions on tornado cash, describing the move as a meaningful step in privacy rights and freedom of speech.
He expressed his support on social media platform X on Thursday, Van Loon v. I responded to a government submission at the Ministry of Finance. “We don’t want to see bad people use cryptography. But privacy is an important feature for many law-abiding citizens and we cannot sanction open source code (it’s a matter of free speech),” added Coinbase executive:
I’m glad to see this fixed. I look forward to working with the Treasury Department to find around 0.1% of crypto-injury illegal activities (much less than cash or banking systems!) in a way that is in line with American laws and values.
Tornado Cash, a decentralized privacy protocol, was blacklisted in 2022 by the Ministry of Finance’s Bureau of Foreign Assets Control (OFAC) due to alleged roles in washing stolen cryptocurrency related to North Korean hackers.
In an updated position, the Ministry of Finance acknowledged the legal complexity of applying financial sanctions to open source technologies that operate without centralized control. The department pointed out the difficulty of targeting financial tools that exist in a decentralized digital environment. While lifting sanctions, authorities reaffirmed their commitment to counter the use of digital assets by the Democratic Republic of Korea (DPRK).
The Ministry of Finance said:
We are deeply concerned about key state-sponsored hacking and money laundering campaigns aimed at stealing, acquiring and deploying digital assets for the Democratic Republic of Korea (DPRK) and the Kim administration.
“Digital assets present vast opportunities for innovation and value creation for the American people. Securing the digital asset industry from abuse by North Korea and other illegal actors is essential to establishing US leadership and ensuring that Americans can benefit from financial innovation and inclusion.”
The legal reversal marks a key moment in the debate about how new financial technologies can be regulated without infringing constitutional protections. Armstrong’s remarks reinforced Coinbase’s broader position that open source software should not be criminalised, and that targeted enforcement efforts can coexist with innovation. His call to work with the Ministry of Finance shows the cooperation of industry governments with the aim of reducing crime without compromising civil liberties.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
