Coinbase Rules Out Overseas Relocation Despite SEC Challenges

Brian Armstrong, CEO of the cryptocurrency exchange platform Coinbase, has made it clear that relocating the company out of the United States is “not in the realm of possibility.” His comments came amid a series of regulatory crackdowns on the crypto industry, stirring debate over the future of digital currencies.

U.S. Regulatory Pressure

Recent tensions have been building between Coinbase and various U.S. regulators, most notably the Securities and Exchange Commission (SEC). The SEC reportedly asked Coinbase to delist every digital asset on its platform except for Bitcoin, which is the only cryptocurrency the regulatory body hasn’t labeled as a security. If carried out, this request would have significantly impacted Coinbase and the entire digital asset industry.

Armstrong was critical of the SEC’s actions, arguing that the request demonstrates an attempt by the regulatory agency to expand its authority. He said that delisting the digital assets would have crippled both Coinbase and the broader industry.

State-Level Issues

The challenges don’t stop at the federal level for Coinbase. Multiple state regulators have issued cease and desist orders against the exchange over its staking service. This summer, states such as Alabama, California, New Jersey, South Carolina, and Wisconsin pressured Coinbase to prove it wasn’t selling unregistered securities.

However, Armstrong shows no sign of backing down. He told The Financial Times that he intends to fight the order and even plans to extend Coinbase’s staking services to all 50 states.

Staying Put

Despite earlier considerations of moving overseas, Armstrong definitively stated that this would not happen. When questioned about the possibility, he was clear:

“It’s not even in the realm of possibility right now. There is no break glass plan. We’re staying in the United States.”

Armstrong acknowledged that the worst-case scenario would involve having to delist crypto assets deemed as securities by the SEC in its lawsuit.