Coinbase CEO Claims “We Are 100% Committed to Local Market, No Plans to Exit US”: Report
The post Coinbase CEO Claims “We Are 100% Committed to Local Market, No Plans to Exit US”: Report appeared first on Coinpedia Fintech News
Brian Armstrong, the CEO of Coinbase, a leading cryptocurrency exchange, has confirmed the company’s resolute commitment to remain in the United States despite facing regulatory uncertainties and legal hurdles.
In a recent interview with the Financial Times, Armstrong dismissed all the possibilities of relocating the company’s operations to a more crypto-friendly country, emphasizing that leaving the U.S. is not even being considered an option at this time. Even if the company plans to exit it will only be in emergency situations.
He stated, “We are staying in the United States,” signaling Coinbase’s steadfast dedication to its current market.
However in April this year, Armstrong publicly hinted to exit the US to a region like the United Kingdom (UK) where crypto prevails with friendly regulations. Whereas his latest comments contradict the same.
Confident Steps Taken to Combat the Lawsuit!
Evidently, the decision to stay comes in the wake of an ongoing lawsuit from the U.S. Securities and Exchange Commission (SEC), which alleges that Coinbase offered unregistered securities. On June 6, the SEC filed the lawsuit, three months after the exchange received a Wells notice from the regulator. But Coinbase’s legal team responded on August 4 by filing a motion to dismiss the lawsuit, asserting that the commission mishandled the case and departed from its previous interpretations of securities laws.
How it will impact the crypto market?
Overall, the outcome of the ongoing legal battle between Coinbase Vs SEC holds a significant impact on the whole US market. As Coinbase’s major revenue comes from the U.S., with $2.7 billion in 2022. While other regions’ revenue is just $ 500 million which is only 10% of the entire US share.
Armstrong is confident that they’ll stay even if they lose the SEC lawsuit for their dedication to channelize the local market. In a similar Ripple Vs SEC case, the SEC ruled that XRP, a cryptocurrency, was not a security. Legal experts and business players have defended Bitcoin startups using this historical example.
Despite other financial firms leaving the U.S. due to regulations, linking Coinbase’s recent license in Bermuda is also a cause of speculations about the firm’s exit from the US. Brian Armstrong confirms they’re staying and the licence is only for expanding international business. This comes after a recommendation to delist some cryptocurrencies.
Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
