Brian Armstrong claims Coinbase is "100% committed to the US."
Crypto exchange Coinbase CEO Brian Armstrong is determined to keep the cryptocurrency exchange rooted in the United States, despite the uncertain regulatory landscape.
Brian Armstrong spoke to investors during a Q1 earnings call when he emphasized the company's unwavering commitment to the United States.
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During the call, Armstrong noted that Coinbase was founded in the US because of the prevailing rule of law, which he believes will ultimately work in favor of the cryptocurrency industry. Coinbase CEO noted:
So let me be clear, we’re 100% committed to the US. 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 US getting this right.”
The CEO expressed optimism that Congress will soon establish a clear set of guidelines for crypto firms to follow, citing strong bipartisan support for new legislation.
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 US and I think it's really important for America to get this right.&rdquo
However, the launch of Coinbase International Exchange (CIE) on May 2nd led some observers to question whether the company was seeking an escape route from the US.
The CIE, licensed in Bermuda, serves customers in 30 countries, including Singapore, Hong Kong, El Salvador, the Philippines, and Thailand. However, Armstrong's comments indicate that Coinbase remains committed to its US operations.
Although Armstrong's outlook was largely positive, he did express concerns about the unpredictable actions of the US Securities Exchange Commission (SEC).
The lack of clarity regarding the SEC's specific concerns about Coinbase has led to uncertainty around any potential litigation the company might face, as it received the SEC's Wells Notice at the end of March. As a result, Coinbase recently filed an action in a US federal court to compel the SEC to respond to a pending petition from July.
In terms of regulatory progress, Armstrong mentioned that the European Union is leading the way with its Markets in Crypto Assets (MiCA) legislation, which is set to take effect between mid-2024 and early 2025.
Despite the challenges, Coinbase's first-quarter report showed a 22% increase in revenue and a significant reduction in net income loss.
Coinbase's dedication to the US market remains steadfast as the company navigates the murky waters of regulatory uncertainty.
