Charles Hoskinson Backs Coinbase CEO as Trump's Crypto Advisor
November 21, 2024
The cryptocurrency industry is buzzing with speculation about a potential “crypto czar” in the White House. This comes as President-elect Donald Trump considers creating an advisory role to guide federal policy on blockchain and digital assets.
Charles Hoskinson, co-founder of Ethereum and founder of Cardano, suggested Coinbase CEO Brian Armstrong as an ideal candidate for the position. This suggestion has sparked a lively debate within the cryptocurrency community. Click here for advertising services or press releases for the crypto project
Brian Armstrong: Hoskinson's Vision of a Crypto Czar
In a post on X (formerly Twitter), Hoskinson emphasized the importance of appointing a neutral, knowledgeable person to the role. He highlighted Armstrong’s leadership at Coinbase, the largest cryptocurrency exchange in the United States. This, among other things, is evidence of his ability to navigate regulatory challenges and foster innovation.
“Regarding the idea of a White House crypto czar, I feel the role should be filled by someone who is neutral, works with all protocols, and has a deep understanding of why crypto is private,” Hoskinson wrote.
The Cardano CEO criticized the current administration under President Joe Biden for its regulatory stance. He accused them of using “unfair tactics” and “regulation through enforcement.”
Hoskinson argued that Armstrong could unite the efforts of industry participants and lead legislative efforts to modernize the U.S. regulatory framework for digital assets.
He also shared his plans to directly assist lawmakers, drawing on his experience helping Wyoming pass 31 crypto-friendly laws. Hoskinson announced “Operation Baseline,” an initiative by IOHK’s policy department aimed at identifying efficiencies and opportunities in the U.S. crypto industry.
Hoskinson's endorsement of Armstrong drew mixed reactions. One X user, Maxim, expressed concerns about Armstrong's association with central entities.
“I personally don’t like this shift because Brian is bringing full centralization to cryptocurrencies. Whether it’s technically through Base or facilitating pension funds like BlackRock with custody,” Maxim argued.
This criticism reflects broader concerns about Coinbase’s growing influence. Some worry about the perceived compatibility of its business model with traditional financial institutions (TradFi).
However, other voices in the crypto community see Armstrong as a viable option. Ed N. Staff, another commenter on X, supported the idea.
“It’s important that the crypto czar is not seen as partisan, so that everyone is involved (without favoring any chain/ecosystem). A major CEX founder involved in everything makes sense,” the user said.
This sentiment highlights Armstrong’s ability to attract diverse stakeholders in the crypto space. Besides Armstrong of Coinbase, another potential candidate is Brian Brooks, the former CEO of Binance.US. Brooks also has a history of serving as Coinbase’s CLO.
Brooks has extensive experience working with the intersection of cryptocurrencies and TradeFi, making him a strong contender. His tenure at the U.S. Office of the Comptroller of the Currency (OCC) was marked by initiatives to integrate digital assets into the banking system. These accomplishments, among others, have earned him respect across the industry.
Both Armstrong and Brooks bring distinct strengths to the table. Armstrong’s experience as an innovator in the cryptocurrency exchange space gives him a deep understanding of the market. Meanwhile, Brooks’ regulatory expertise positions him as a bridge between policymakers and the cryptocurrency industry.
In any case, Trump’s consideration of a cryptocurrency adviser reflects the growing importance of digital assets in the global economy. Hoskinson believes the move presents a unique opportunity for the United States to position itself as a global leader in blockchain innovation, and he called on the industry to unite behind a common vision.
It remains to be seen whether more candidates will join the race to become the White House’s crypto czar. However, the debate reflects the challenges of balancing innovation with regulation. While Armstrong’s selection would signal a commitment to the industry’s growth, it also raises questions about the role of centralization in a space built on decentralization.
The final appointment is expected to help shape the trajectory of U.S. cryptocurrency policy for years to come. Whether it’s Armstrong, Brooks, or someone else, the decision will reflect how the next administration plans to address the complexities of the crypto economy while fostering innovation.