In the words of Brian Armstrong, “I think in a number of years if we don't see that regulatory clarity emerge in the U.S. we may have to consider investing more elsewhere in the world.”
Coinbase CEO Brian Armstrong claimed that the firm may relocate out of the US if the authorities do not provide clarity on crypto regulations.
The announcement came a few weeks after the SEC issued a Wells notice to Coinbase for violating securities laws.
In a recent discussion during Fintech Week, Armstrong praised the UK for its regulatory regime. He added that with proper rules, the UK could cement its standing as a regional hub for crypto firms.
Comparing the regulatory landscapes of the US and the UK, he noted that having a single regulatory body in charge of commodities and securities makes it easier to develop crypto rules. Armstrong added,
“We actually have contradictory statements from the heads of the CFTC and the SEC coming out almost every few weeks. How's a business going to operate in that environment? We just want a clear rulebook.”
The CEO of Coinbase further noted that without clarity in crypto legislations, more platforms will relocate to “oversea havens.” According to Armstrong, the “turf war” between the SEC and the CFTC over the classification of crypto assets is responsible for the lack of regulatory clarity in the US.
Moreover, the CEO of Coinbase emphasized that centralized and decentralized platforms should be regulated differently.
It is worth noting that Coinbase is not the only platform that is considering pulling out of the US.
In December 2022, Nexo announced that the lending firm will cease servicing US clients after hitting a dead end in its discussions with regulators. At the beginning of April, crypto exchange Bittrex announced its plans to shut down its US platform shortly after receiving a similar Wells notice from the SEC.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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