Coinbase CEO Brian Armstrong addressed the concerns surrounding the possibility of the cryptocurrency exchange leaving the United States amid ongoing regulatory uncertainties. This was in a recent report by the Financial Times on August 4th.
Staying Put in the US Market
Armstrong made it clear that Coinbase has no intention of relocating. This is despite the growing number of crypto firms considering leaving the US due to potential legal actions from federal regulators. Notably, he emphasized that leaving the US was “not even in the realm of possibility right now.” The absence of any contingency plan to exit the country in case of emergency further reinforced this decision.
Previous Mixed Signals and Legal Battles
Interestingly, Armstrong had hinted at the possibility of relocating Coinbase’s headquarters to a more crypto-friendly country. This was at a fintech event in London held in April. Additionally, the lack of regulatory clarity in the US market at that time prompted this suggestion.
However, the CEO later reassured shareholders. He said that Coinbase is “100% committed” to its presence in the United States in the long term.
Coinbase’s decision to remain in the US comes amidst legal challenges from both the US SEC and state regulators. The SEC filed a lawsuit against the exchange on June 6, alleging the offering of unregistered securities. In response, Coinbase’s legal team filed a motion on August 4 to dismiss the lawsuit. They cited violations of due process and changes in the SEC’s interpretation of securities laws.
The Ripple Precedent
The outcome of the SEC’s case against Coinbase is likely to set a precedent for other crypto firms operating in the United States. Notably, in a recent lawsuit against Ripple, a federal judge ruled that XRP was largely not a security by SEC standards.
This ruling has already been referenced by lawmakers and lawyers, including Coinbase’s Chief Legal Officer Paul Grewal, in support of crypto companies.
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