As Binance navigates a historic $4.3 billion settlement with U.S. regulators, Coinbase CEO Brian Armstrong believes it’s time for the crypto industry to “turn the page.” In an exclusive interview with CNBC’s Joumanna Bercetche, Armstrong discussed the recent controversies surrounding Binance, the need for regulatory clarity, and Coinbase’s stance in the evolving crypto landscape.

Binance Exodus and Coinbase Influx
Following the announcement of Binance’s settlement, the exchange witnessed significant outflows, leading to a notable influx of investors to Coinbase. Armstrong views this as a pivotal moment, stating, “The enforcement action against Binance… is allowing us to kind of turn the page on that and hopefully close that chapter of history.”

The influx of users to Coinbase reflects a broader sentiment in the industry, indicating a preference for platforms that prioritize regulatory compliance and transparency.

Regulatory Clarity as a Catalyst for Investment
Brian Armstrong emphasized the crucial role of regulatory clarity in attracting substantial investment, particularly from institutional players. While acknowledging the contributions of many crypto startups to the global digital asset industry, he highlighted the need for a well-defined regulatory framework to foster growth and encourage increased investment.

“There are many crypto companies that are helping build the crypto economy and change our financial system globally. But many of them are still small startups… I think that regulatory clarity is going to help bring in more investment, especially from institutions,” noted Armstrong.

Defending Crypto’s Reputation
Addressing concerns about the crypto industry’s reputation, Armstrong refuted the common misconception associating digital assets with illegal activities such as fraud, money laundering, and terrorism financing. He provided insights based on observations, stating that criminal activity in the decentralized finance (DeFi) sector comprises less than 1% of all transactions.

Contrasting this with illicit uses of traditional cash, Armstrong argued that crypto’s track record is relatively cleaner. His comments challenge prevalent narratives that paint the crypto industry in a negative light, discouraging institutional investment due to perceived compliance risks.

“It’s true that there have been some small amounts of illicit activity in crypto, but it’s actually less than 1% from what we’ve seen. If you look at illicit uses of cash, it’s oftentimes more than that,” highlighted Armstrong.

Coinbase’s Expansion in the UK
Brian Armstrong, currently in the United Kingdom for the Global Investment Summit, shared insights into Coinbase’s expansion in response to U.K. Prime Minister Rishi Sunak’s positive stance on digital currencies. While Coinbase is involved in a legal battle with the U.S. Securities and Exchange Commission (SEC), Armstrong expressed confidence in defending against the lawsuit and emphasized ongoing investments in the domestic market.

Coinbase’s participation in the Global Investment Summit, where it is the only DeFi company invited, is seen as an endorsement for the platform but not necessarily for the broader crypto market.

As the crypto industry grapples with regulatory challenges and perceptions, Brian Armstrong’s remarks underscore the importance of regulatory clarity and transparency for the sustained growth and acceptance of digital assets on a global scale.