Coinbase’s CEO, Brian Armstrong, has suggested that the cryptocurrency exchange might consider moving away from the US if they continue to have difficulties with regulators. Amid disagreements about how federal securities laws apply to the crypto industry, Armstrong hinted that Coinbase has already started to assess potential locations for new headquarters. One country of interest is the UK, which is Coinbase’s second-highest revenue country and has shown promising initiatives to become a hub for Web3 technologies.
The main point of contention seems to be between Coinbase and the SEC, which issued a warning that the company could face legal action for violating federal securities laws. The SEC has never notified Coinbase about any alleged compliance issues until recently, according to Armstrong.
“I think we’re going to have to actually end up going to court to get the clarity we need and create the case law,” he said.
Armstrong believes that legal clarity is needed for crypto regulations in the US to progress smoothly. He stated that Coinbase is ready to face any legal action that might come their way, even if it turns into a years-long legal battle.
Another ongoing legal dispute involving the SEC is with Grayscale, which sued the agency for refusing to approve their application to launch a Bitcoin Spot ETF. Court judges expressed skepticism towards the SEC’s arguments, which caused Grayscale to see an increase in value on the day of the hearing.