PodcastsAll-In with Chamath, Jason, Sacks & FriedbergAll-In Summit: In conversation with Brian Armstrong

All-In Summit: In conversation with Brian Armstrong
All-In with Chamath, Jason, Sacks & FriedbergWed Sep 20 2023
Regulation and Innovation:
- Brian Armstrong agrees with Bill Gurley's statement about the need for more regulation in the cryptocurrency industry.
- He believes that regulatory capture is a hindrance to innovation and that there should be less regulation to foster more innovation.
- However, he acknowledges that regulation is necessary and suggests implementing basic rules such as audits, illegal watch trading, and a process for registering crypto securities.
- He differentiates between centralized players in crypto, which should follow financial services regulations, and decentralized protocols or self-custodial wallets, which should be treated more like the software industry.
- Brian also mentions the importance of creating sandboxes for startups to operate in if they cannot afford high legal bills.
Challenges with SEC:
- Brian criticizes the chair of the SEC, Gary Gensler, for weaponizing the agency for his own political purposes and impeding crypto innovation.
- He speculates that regulators like Gensler and Elizabeth Warren do not want crypto to exist because they prefer government control over financial services.
- Brian argues that people should have control over their own money and be free to use new technologies without excessive government intervention.
Fraud and Criminality:
- Brian acknowledges that bad actors have been attracted to the crypto industry, leading to scams and frauds.
- He believes that fraudulent individuals should face consequences through the justice system but emphasizes that it does not justify outlawing an entire industry.
The Administrative State:
- Brian raises concerns about the administrative state overreaching its authority by de facto creating laws through guidance letters and subpoenas from agencies like the SEC.
- He questions whether this overreach violates constitutional principles regarding Congress's role in creating laws.
Decentralization vs. Government Control:
- Brian acknowledges that Bitcoin and blockchain technology challenge centralized governments' control over currency issuance and financial services.
- He states that Americans should be free to use cryptocurrency and argues against government attempts to maintain power by pressuring companies through big banks.
Use Cases for Cryptocurrency:
- Brian mentions several existing use cases for cryptocurrency, including trading, stablecoins, decentralized finance (DeFi), and non-fungible tokens (NFTs).
- He also highlights the potential of decentralized identity as a use case that can enable decentralized social networks and provenance verification.
- Brian recognizes the need to improve user experience (UX) to make crypto more accessible and appealing to a wider audience.
- Scalability issues with blockchains are identified as another challenge that needs to be addressed to unlock further growth in use cases.
Accredited Investor Laws:
- Brian agrees with the idea of accreditation based on passing a test rather than net worth.
- He criticizes accredited investor laws for excluding 94% of people from participating in wealth creation opportunities and supports making it more inclusive based on knowledge rather than wealth.
Simplifying User Experience:
- Brian acknowledges the complexity of using cryptocurrencies and calls for improved user experience across crypto companies.
- He believes that simplifying UX, scalability improvements, and regulatory improvements are essential for driving adoption beyond early adopters.
International Expansion:
- While maintaining focus on their home base in the US, Coinbase is actively pursuing international expansion into markets like Canada.
- They aim to provide services that cater to different regions' needs, such as self-custodial wallets in emerging markets like India.
Investments Outside of Coinbase:
- Brian's investments outside of Coinbase align with his goal of accelerating progress in the world through technology and innovation.
- Research Hub aims to make scientific research more efficient by adopting open-source software principles.
- New Limit focuses on longevity research through epigenetic reprogramming.
Crypto Advocacy:
- Brian emphasizes the importance of standing up for crypto-friendly regulations by encouraging people to raise awareness and vote pro-innovation candidates into office.