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Coinbase CEO proposes the establishment of crypto cities in the United States., 2026/04/05 13:54:18
The CEO of the largest American cryptocurrency exchange, Coinbase, Brian Armstrong, has suggested initiating the establishment of “cryptosandboxes” in the United States—special economic zones (SEZs) modeled after the Chinese city of Shenzhen. According to the executive, these “cryptocities” would facilitate the growth of the crypto industry and advanced technologies.
Armstrong believes that these sandboxes should consist of individual small cities with “lightened regulations” and “minimal regulatory barriers.” He argues that the current fragmented regulation across various states hinders the advancement of blockchain technologies in the U.S.—especially in light of progress in Asia and the Middle East.
American crypto-SEZs would enable the faster development of stablecoin infrastructure and decentralized applications, Armstrong is convinced. He asserts that cryptocities would help attract back talents and capital from crypto entrepreneurs, enhance the economic activity of blockchain networks, and solidify the country’s status as a “true crypto capital.”
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In an interview with Relentless Podcast, Armstrong recalled that Shenzhen transformed from a fishing village into a major technology hub after being designated as a special economic zone in 1980. Similar zones in the U.S., according to Armstrong’s vision, would allow companies to test solutions for decentralized finance (DeFi), biotechnology, autonomous systems, and more.
Previously, Coinbase invested in the Prospera project—a special economic zone in Honduras where Bitcoin is used as a payment method, and taxes can be paid using BTC, exempting local businesses from capital gains tax—provided they use Bitcoin.
Brian Armstrong has been advocating for the concept of special economic zones for several years. In 2025, he proposed creating ten such zones in the U.S., one of which would be dedicated to the crypto industry. The main argument from the executive is that Bitcoin serves as an international currency, resilient to inflation and operating without centralized control.
