Coinbase Remains ‘100% Committed’ to the US Market: Armstrong

Coinbase, a cryptocurrency exchange created in the United States, has no intentions to relocate its operations outside of the country, according to CEO Brian Armstrong during a Q1 earnings call.

Despite regulatory uncertainty in the United States, Armstrong assured shareholders on May 5 that the company is “100% committed” to the market in the long term. “Let me be clear: we are completely committed to the United States.” I established my corporation in the United States because I noticed that the rule of law is respected here. That is critical, and I am confident that the United States will get it right.”

Armstrong’s “optimism” stems from his belief that Congress will soon pass 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.”

Armstrong’s remarks, however, were not wholly “optimistic.” The CEO is worried about the Securities and Exchange Commission’s unanticipated enforcement action, which comes after the business was issued with a Wells Notice by the securities regulator in late March:

“Despite our ongoing engagement with the commission, they have not been as specific about their concerns with Coinbase as we would like, so I must refrain from speculating too much.”

“It’s especially difficult to predict the timeline of any potential SEC litigation we might face,” Armstrong said.

Coinbase filed a case in a U.S. federal court to force the SEC to address a petition that had been outstanding since July. The back and forth comes as Coinbase established Coinbase International Exchange (CIE) on May 2, leading many analysts to conclude that Coinbase was seeking a way out of the United States.

Customers may use the exchange in 30 countries across the globe, including Singapore, Hong Kong, El Salvador, the Philippines, Thailand, and Bermuda, where CIE is currently licensed. The European Union, according to Armstrong, is “in front” in terms of legislative development, with its Markets in Crypto Assets (MiCA) legislation slated to take effect in mid-2024 or early 2025:

“They’ve passed comprehensive crypto legislation known as MiCA, establishing a single, clear rule book for the entire region.” It’s rather potent.”

“I recently returned from a vacation to the United Kingdom and Washington, D.C. Both have draft bills in the works that address issues such as stablecoins and market structure. Singapore, Hong Kong, Australia, and Brazil are all moving similarly,” Armstrong remarked.

The CEO’s comments came after Coinbase increased its sales by 22% and reduced its net income loss from $475 million to $79 million in Q1.