As the regulatory crackdown on the publicly-traded American crypto exchange Coinbase prolongs, the company’s CEO has now dismissed every thought of leaving the country, stating that Coinbase will remain in the United States.
Armstrong: We’re Staying in the United States
On June 6th, the U.S. Securities and Exchange Commission (SEC) sued Coinbase over alleged violations of securities laws. The lawsuit also termed the exchange’s crypto staking feature as an “illegal securities sale.” The lawsuit, which has spanned over two months, has caused a downward spiral in Coinbase spot trading volume, as shown in the chart below:
Source: Financial Times
Last month, Coinbase was forced to discontinue its staking operations in four U.S. cities, citing the SEC’s regulatory crackdown on the service.
Despite all this, the company remains determined to continue operating fully in the U.S. In a Zoom video call with a Financial Times journalist, Coinbase’s CEO Brian Armstrong echoed this when he said:
“It’s not even in the realm of possibility right now,” he said. “There is no break glass plan. We’re staying in the United States.”
In April, Armstrong publicly hinted at the idea of his company migrating from the U.S. to other regions like the United Kingdom (UK) with friendlier crypto regulation. His latest comment discards any thought of leaving the country.
Armstrong’s statement comes at a time when other financial companies offering crypto services to U.S. clients are exiting the country.
Last week, the financial agency recommended that Coinbase delist all cryptocurrencies it offers aside from Bitcoin, after previously declaring 13 cryptocurrencies as securities. The Coinbase CEO noted that the crypto custodian will take the matter to court.
Why is Coinbase Remaining in the U.S.?
Although no definite reason was mentioned as to why Coinbase will remain in America, the FT journalist noted a possible reason.
Coinbase is seeing its most revenue from the U.S. In 2022, the exchange saw revenue of about $2.7 billion from America alone. Revenue from other parts of the world accounted for a little over $500 million, where no single country holds more than 10% share.
Armstrong added that his company will remain in the country even if it loses its lawsuit against the SEC.
