Coinbase CEO Armstrong Said Coinbase Remains 100% Committed to US Market
During an earnings call for Q1, Coinbase CEO Brian Armstrong informed investors that the US-based cryptocurrency exchange has no intention to relocate its operations outside the US. He assured shareholders on May 5 that the company is fully devoted to the US market in the long run, despite the regulatory ambiguity prevailing in the country.
So let me be clear, we’re 100% committed to the U.S. I founded this company in the United States because I saw that rule of law prevails here. That’s really important, and I’m actually really optimistic on the U.S. getting this right.
Coinbase CEO – Brain Armstrong
The optimism alluded to by Armstrong comes from his confidence in Congress soon passing a clear set of rules for crypto firms to follow:
When I go visit DC, there is strong bipartisan support for Congress to come in and create new legislation that would create a clear rule book in the U.S. and I think it’s really important for America to get this right.
Coinbase CEO – Brain Armstrong
Armstrong’s remarks were not entirely positive. The CEO expressed concern about the unpredictable implementation of the Securities Exchange Commission’s enforcement action, following the securities regulator’s issuance of a Wells notice to the company in late March:
Despite our ongoing engagement with the commission, they have not been as clear about what their specific concerns are with Coinbase as we might like, and so I have to refrain from speculating too much.
Coinbase CEO – Brain Armstrong
Armstrong also added:
It’s especially difficult to predict the timeline of any potential SEC litigation that we might face.
The troubles led Coinbase to file an action in a U.S. federal court seeking to compel the SEC to answer a petition that has been pending since July.
Coinbase’s recent launch of Coinbase International Exchange (CIE) on May 2 has led many experts to speculate that the company is attempting to depart from the US market.
However, this back and forth discussion occurs despite the fact that the exchange is available to customers in 30 countries across the globe, including Singapore, Hong Kong, El Salvador, the Philippines, Thailand, and Bermuda. CIE has now obtained licensing from Bermuda.
According to Armstrong, the European Union has made considerable advancements in terms of regulation, with its Markets in Crypto Assets (MiCA) legislation set to take effect in mid-2024 or early 2025, placing it ahead of other regions:
They’ve adopted comprehensive crypto legislation called MiCA, creates a single clear rule book for the entire region. It’s pretty powerful.
Coinbase CEO – Brain Armstrong
Armstrong also added:
I just got back from a trip from the U.K. and D.C. Both of those have draft bills in the works that are working on things like around stablecoins and market structure — Singapore, Hong Kong, Australia, Brazil; all are essentially following in this direction.
The CEO’s remarks come as Coinbase managed to increase its first-quarter revenue by 22% while slashing its net income loss by over $475 million, to $79 million.
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