Coinbase CEO Calls for Establishing an Innovation Sandbox and Small-Scale Governance Pilots at the Federal Level

On October 9, Coinbase CEO Brian Armstrong stated that the U.S. federal level requires more small-scale governance experiments or the establishment of innovative regulatory sandboxes. Arguing over every reform on a national scale results in prohibitively high trial-and-error and learning costs, leading to sluggish progress.

Brian Armstrong noted that competition is the optimal mechanism for consumer protection, while the government remains structurally insulated from competitive forces. He suggested conducting pilot tests in designated areas (such as 10 square miles of federal land), evaluating them through accelerated licensing, regulatory relief, or tailored rules, and scaling proven frameworks based on real-world performance.