Coinbase Global Inc. COIN CEO Brian Armstrong underscored the need for comprehensive legislation regarding token classification and stablecoins to drive capital flows into the cryptocurrency market on Thursday.

What Happened: During the company’s fourth-quarter 2024 earnings call, Armstrong pinpointed crucial areas that require legislative attention.

Firstly, he stressed token classification, which should answer the “age-old question” of which are commodities, securities, payment or currency stablecoins, and unregulated entities like non-fungible tokens or collectibles.

“And so if we can get that token classification clarified in new legislation or if Congress can really do that, I think it would open up huge pools of capital to flow into cryptocurrency,” the top executive remarked.

Secondly, Armstrong highlighted the importance of a clear framework for issuing dollar-backed stablecoins in the U.S.

“It doesn’t have to just be done federally. We want to make sure that you don’t have to be a bank, although you could issue a stablecoin,” Armstrong added, asking for a comprehensive stablecoin bill that addresses these concerns.

The CEO also welcomed the idea of a strategic Bitcoin BTC/USD reserve for the country.

See Also: Robinhood CEO Vlad Tenev Reveals What He’s ‘Most Excited’ About As Crypto Revenue Skyrockets 8X, Stock Surges 15% After Hours

Why It Matters: Armstrong’s emphasis on clear cryptocurrency legislation follows his bullish predictions on Bitcoin. Earlier this week, he forecasted that Bitcoin adoption would reach billions by 2030, drawing parallels with the early adoption rates of mobile phones and the internet.

The cryptocurrency behemoth released its fourth-quarter financial results after the market close Thursday, reporting a higher-than-expected fourth-quarter revenue of $2.3 billion, up 88% quarter-over-quarter.

Price Action: Coinbase stock fell 1.47% in after-hours trading after closing up 8.44% to $298.11 during Thursday's regular session. Year-to-date, the shares have gained over 20%.

Photo by rafapress on Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.