Coinbase CEO says the exchange is fully committed to the US market

The founder of US-founded cryptocurrency exchange Coinbase, Brian Armstrong, has said the company has no plans to shift its operations outside the US. Armstrong revealed the company’s commitment to the US market in a Q1 earnings call.

Coinbase is fully committed to the US market

Armstrong commented on the earnings call on May 5, saying the company was “100% committed” to the US market in the long term. These assurances come despite the cases of regulatory concern in the US.

“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,” Armstrong said.

The statement shows that Armstrong is confident in the US Congress passing legislation providing regulatory clarity for the cryptocurrency industry. However, the executive is still concerned with the US Securities and Exchange Commission’s (SEC) market regulation strategy.

Towards the end of March this year, the SEC served Coinbase with a Wells notice, which usually precedes a regulatory action. Armstrong said the exchange had been engaging with the SEC regarding crypto regulations. However, the exchange has not been clear on the specific concerns they have with the exchange’s operations. He also said that he would not speculate much on what would go on between Coinbase and the SEC.

Armstrong also said that the troubles with the SEC led to Coinbase filing an action with a US federal court seeking to compel the commission to respond to a petition filed in July last year. The petition had urged the SEC to provide more clarity on the crypto regulatory framework.

Coinbase launches an offshore exchange

The tussle between Coinbase and the SEC comes after Coinbase launched the Coinbase International Exchange (CIE) on May 2. The launch of CIE led to many believing that Coinbase was looking to diversify its operations beyond the US.

The exchange serves customers across 30 countries globally. Some of its locations outside the US include El Salvador, Hong Kong, the Philippines, Thailand, and Bermuda. The CEI is currently licensed to operate from Bermuda.

The Coinbase CEO has also applauded the European Union for advancing crypto regulations. According to the executive, the EU had made regulatory progress with the launch of the Markets in Crypto Assets (MiCA) legislation that will come into effect in mid-2024 or early 2025 and apply to crypto firms operating in the region.

Armstrong said that MiCA was a comprehensive crypto legislation that created a single regional rulebook. He also added that he had visited the UK and Washington DC, and the two were also working on a regulatory framework around stablecoins and market structure. The remarks made by Armstrong come after Coinbase reported a 22% increase in its Q1 revenues, with the net income loss also dropping to $79 million.