Brian Armstrong, CEO of Coinbase, did not comment on whether the cryptocurrency exchange company plans to leave the United States due to regulatory uncertainty.
According to an August 4 Financial Times article, Armstrong said that Coinbase “remains in the United States” despite many other crypto companies considering leaving the country due to the potential threat of lawsuits from federal regulators. Coinbase is currently facing legal action from the US Securities and Exchange Commission, as well as scrutiny from 10 government regulators, many of which have issued cease and desist orders from the exchange’s betting services.
Apparently, the CEO of Coinbase said that Leaving the United States “was not even possible now” and that there was no contingency plan. However, at a fintech event in London in April, Armstrong stated that the company may consider moving its headquarters from the US to a more cryptocurrency-friendly country due to a lack of regulatory clarity. He later told shareholders that Coinbase is “100% committed” to the US market for the long term.
Met with the SEC today. We will continue to push for a clear set of rules in the US for crypto regions.
The US cannot afford to be left behind in this important technology to renew the financial system.
It is also important that regulators establish a policy and THEN enforce it. Don’t start with… pic.twitter.com/EaPD7wDbSx
—Brian Armstrong️ (@brian_armstrong) April 21, 2023
The SEC filed a lawsuit against Coinbase on June 6, about three months after the exchange received Wells’ notice from a federal regulator about the alleged offering of unregistered securities. Lawyers for Coinbase filed a motion to dismiss the lawsuit on August 4, arguing that the commission “violated due process, abused its powers, and retracted its previous interpretations of securities laws.”
The outcome of the SEC v. Coinbase case could have far-reaching implications for crypto companies operating in the United States. In July, a federal judge in a commission lawsuit against Ripple ruled that XRP was largely not a security by SEC standards. Lawmakers and lawyers, including Coinbase General Counsel Paul Grewal, have already cited the decision in defense of crypto companies.
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