Coinbase Could Quit US, Says CEO, as SEC Doubles Down on Crypto Scrutiny
Coinbase (COIN), the largest U.S.-domiciled crypto exchange by trading volume, could leave the U.S. if regulators don't clarify their approach to cryptocurrencies, CEO Brian Armstrong said.
Armstrong, speaking at an event in London, said he was frustrated by the lack of clear rules for the crypto industry in the U.S., where different regulators have conflicting views on how to classify and regulate digital assets. He said that he would prefer to operate in a jurisdiction where there is only one regulator with a consistent approach, such as the U.K.
«I think if a number of years go by where we don’t see regulatory clarity emerge in the US, we may have to consider investing more in other regions of the world,» said Armstrong.
Armstrong added that he still sees the U.S. as an important crypto market, but if the situation does not improve in the next few years, he would be open to relocating the company. “Anything is on the table, including relocating or whatever is necessary,” he said.
The Securities and Exchange Commission (SEC) has initiated more than 50 crypto-related enforcement actions in the last few years. The SEC filed a suit against the crypto exchange Bittrex on Monday. The exchange began winding down its U.S. operations earlier this month, citing «the current U.S. regulatory and economic environment.»
Coinbase itself received a Wells notice, a warning of impending legal action, from the SEC in late March.
The House Committee on Financial Services grilled SEC Chair Gary Gensler on Tuesday about how securities laws will be applied to the crypto industry going forward. Before the hearing, 29 Republican members of Congress echoed Armstrong's concerns in a letter to Gensler.
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