Coinbase CEO Rejects Calls for New AI Regulations

Coinbase chief Brian Armstrong is pushing back against tech leaders who want a new regulatory body for artificial intelligence. Google DeepMind CEO Demis Hassabis recently proposed a federally overseen standards body to test frontier AI models before they launch, earning support from executives at OpenAI and Microsoft. Armstrong, however, thinks this would only create a slow double approval process. He believes existing laws covering fraud and consumer protection are already strong enough to handle any actual damages.

This debate hits close to home for Coinbase. The exchange recently revealed that artificial intelligence now writes between 95% and 100% of its software code, which is a massive jump from the 40% estimate the company shared in February. Coinbase even trimmed its workforce by 14% earlier this year to rebuild around smaller teams with AI at the center of their operations.

While Armstrong trusts AI developers to keep their products safe because of commercial incentives, the technology still has its hiccups. Coinbase recently had to investigate an AI generated notification that incorrectly reported a sports score before the game even started. As more crypto firms swap human staff for automated tools, the industry will be watching closely to see if existing legal safety nets can truly keep up.