Coinbase CEO Opposes AI Regulation for Innovation

In a recent post on the social media platform X (formerly Twitter), Brian Armstrong, CEO of cryptocurrency exchange Coinbase, expressed his position on artificial intelligence (AI) regulation.

Armstrong explained on September 23 that he believes AI should not be regulated. According to the CEO of Coinbase, the AI space must develop rapidly for national security and other reasons.

Armstrong added that despite regulators’ best intentions, regulation “has unintended consequences,” arguing that it stifles innovation and competition.

The Coinbase representative used the internet as an illustration. Armstrong believes that the internet and software experienced a “golden age of innovation” because they were unregulated.

The CEO of Coinbase suggested applying the same principle to AI technology. In addition, Armstrong presented an alternative to regulation for safeguarding the AI space.

According to the executive, it would be preferable to “decentralize it and make it open source” to “let the cat out of the bag.” Various jurisdictions around the world have begun to regulate AI or have expressed concern over its potential consequences.

China’s provisional AI activity and administration guidelines went into effect on August 15. The regulations were published on July 10 and were the result of a collaboration between six government agencies.

This is the first set of AI regulations to be enacted in the nation in light of the recent AI growth. The competition regulator in the United Kingdom investigated AI to determine its potential impact on competition and consumers.

The U.K.’s Competition and Markets Authority concluded on September 18 that while AI has the potential to alter people’s work and lives, the changes could occur too quickly and have a substantial effect on competition.