Coinbase CEO Brian Armstrong Rejects Calls for a New AI Regulatory Body

Coinbase CEO Brian Armstrong has rejected calls for a new AI self-regulatory body, arguing that existing laws already provide enough protection against harmful AI. His remarks came a day after Coinbase disclosed that AI now writes over 95% of its code, more than double the figure reported earlier in the year.

Armstrong’s comments were in response to a July 14 proposal from Google DeepMind CEO Demis Hassabis, who called for a federally overseen standards body to test and certify frontier AI models before deployment. Hassabis warned that artificial general intelligence could arrive within years, potentially introducing cybersecurity and biological risks. He proposed a public-private organization akin to the Financial Industry Regulatory Authority (FINRA), starting with voluntary reviews and possibly moving to mandatory testing for advanced systems.

While tech leaders like Chamath Palihapitiya and OpenAI’s Sam Altman praised the proposal, Armstrong disagreed, arguing such arrangements create a dual approval process that forces businesses to satisfy both state regulators and industry bodies. He insisted AI needs neither a self-regulatory organization (SRO) nor a government watchdog, as no harm has occurred that couldn’t be compensated under current laws.

“Why design regulation around a hypothetical problem?” Armstrong asked, noting that existing laws covering fraud, torts, and unfair or deceptive practices already provide broad protections if a model causes harm. He also highlighted AI developers’ commercial incentive to release safe products, as users avoid dangerous tools.

Armstrong’s stance aligns with Coinbase’s deepening AI integration. Rob Witoff, Coinbase’s head of platform, recently told Cointelegraph that 95% to 100% of the exchange’s code is now written by or with large language models—up from about 40% in February. In May, Coinbase cut 14% of its workforce to reorganize around smaller, experienced teams with AI at the center. Sensitive areas like cryptography still receive detailed human review, while internal prototypes are built almost entirely through automation.

Other crypto firms, including Gemini, Crypto.com, and Kraken, have also reduced headcounts while expanding AI use. However, rapid adoption has caused setbacks, such as an AI-generated notification from Coinbase falsely reporting a FIFA World Cup match result earlier this month.

Source: https://cryptopotato.com/coinbase-ceo-brian-armstrong-rejects-calls-for-a-new-ai-regulatory-body/