Coinbase CEO says leaving US ‘not even in the realm of possibility right now’: Report

Brian Armstrong, chief govt officer at Coinbase, has reportedly waffled about whether or not the cryptocurrency alternate plans to depart the USA amid regulatory uncertainty.

In accordance with an Aug. 4 report from the Monetary Instances, Armstrong said Coinbase was “staying in the USA” regardless of many different crypto companies contemplating leaving the nation with the potential menace of authorized motion from federal regulators. Coinbase at the moment faces a lawsuit from the U.S. Securities and Trade Fee in addition to scrutiny from 10 state regulators, lots of whom issued stop and desist orders on the alternate’s staking companies.

The Coinbase CEO reportedly mentioned leaving the U.S. was “not even within the realm of risk proper now” and there was no “break glass plan” — doubtless referring to what the alternate would do within the occasion of an emergency. Nonetheless, at a fintech occasion in London in April, Armstrong reportedly mentioned the alternate might consider relocating its headquarters from the U.S. to a extra crypto-friendly nation because of the lack of regulatory readability. He later told shareholders Coinbase was “100% dedicated” to the U.S. market over the long run.

Associated: Coinbase earnings show the company is now much more than just an exchange

The SEC filed a lawsuit in opposition to Coinbase on June 6, roughly three months after the alternate obtained a Wells discover from the federal regulator for allegedly providing unregistered securities. Coinbase’s authorized group filed a motion to dismiss the lawsuit on Aug. 4, claiming the fee had “violated due course of, abused its discretion, and deserted its personal earlier interpretations of the securities legal guidelines”.

The result of the SEC’s case in opposition to Coinbase may have far reaching implications for crypto companies working the USA. In July, a federal choose dominated within the fee’s lawsuit in opposition to Ripple that XRP was largely not a security by SEC requirements. Lawmakers and legal professionals — together with Coinbase chief authorized officer Paul Grewal — have already cited the ruling in protection of crypto firms.

Journal: Binance, Coinbase head to court, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10