Coinbase CEO Brian Armstrong Addresses “Paper Bitcoin” Claims, Claims Bitcoin ETFs Are Fully Backed

During a company AMA, Coinbase CEO Brian Armstrong addressed scrutiny over Bitcoin ETFs, confirming Coinbase holds over 80% of the U.S. ETF custody market and viewing this concentration as a strength. He refuted claims that spot Bitcoin ETFs are backed by "paper Bitcoin," stating they must be fully backed by the underlying asset as required by law. Coinbase CFO Alesia Haas clarified that while they do not publicly disclose client wallet addresses for security, ETF issuers and custody clients can independently verify their assets on-chain. Haas also noted that Coinbase provides SOC 1 and SOC 2 reports to demonstrate effective controls and asset segregation. Separately, Armstrong addressed regulatory efforts, clarifying that Coinbase objected to a specific draft of the CLARITY Act because it contained concessions harmful to crypto innovation, but remains engaged in negotiations, expecting a market structure bill to eventually pass.

(Source：Bitcoin Magazine)