Coinbase CEO Brian Armstrong on Monday rejected calls for a new self-regulatory body for artificial intelligence, arguing that existing laws already provide sufficient protection. The comments come as the exchange disclosed that AI now writes over 95% of its code — more than double the 40% figure reported earlier this year.
The regulatory debate
Google DeepMind CEO Demis Hassabis recently proposed a federally overseen standards body to test and certify frontier AI models before deployment, citing potential cybersecurity, biological, and national security risks from artificial general intelligence. The proposal drew support from tech heavyweights: Chamath Palihapitiya called it 'quite well reasoned,' OpenAI CEO Sam Altman described it as 'a thoughtful proposal,' and Microsoft CEO Satya Nadella called it 'an important piece,' adding that the goal should be to avoid 'any model that breaks the world.'
Armstrong pushed back. He argued that a self-regulatory organization or government watchdog would create a dual approval process, and that existing laws — fraud, tort, UDAP — already provide broad protections. He questioned designing regulation around a hypothetical problem, and pointed out that AI developers have a strong commercial incentive to release safe products because users avoid dangerous tools.
AI's growing role at Coinbase
Coinbase's head of platform Rob Witoff stated that between 95% and 100% of the exchange's code is now written by or with large language models. Sensitive areas like cryptography still receive detailed human review, but the shift is dramatic. In May, Coinbase announced a 14% workforce reduction to reorganize around smaller, more experienced teams with AI at the center of operations.
The reliance on AI isn't flawless. Coinbase recently investigated an AI-generated notification that incorrectly reported a FIFA World Cup match result before the match had started. The error highlights the risks of automated systems operating without sufficient guardrails.
Industry-wide shift
Coinbase isn't alone. Other crypto firms including Gemini, Crypto.com, Kraken, Messari, and Dune have also reduced headcounts this year while expanding AI use. The trend suggests a broader industry bet that AI can replace human labor in many functions, even as regulators and executives debate how to govern the technology itself.
The question now is whether the industry will coalesce around a self-regulatory framework — or face government-imposed rules. Armstrong's stance puts him at odds with some of the biggest names in tech, but he's betting that existing law and market incentives are enough.
