Although Coinbase received a Wells Notice from SEC and pushed the agency to establish clear rules for the crypto industry, the company still believes that U.S. authorities will deliver the rulebook. But Coinbase doesn’t believe as much in SEC.
On May 4, Coinbase released a report on its first quarter 2023 results, stating that the exchange managed to significantly reduce its net loss compared to 2022 results. The company’s net loss narrowed from $557 million in Q4 2022 to $79 million in Q1 2023. Coinbase said:
This quarter represented a turning point in our drive towards building a company that is more efficient and financially disciplined; a company that is able to do more for less. We reduced costs, doubled down on operational excellence and risk management, and continue to drive product innovation and regulatory clarity. Our efforts are showing meaningful progress.
As for the recently received Wells Notice from SEC on unregistered securities products offering, the exchange said:
We see this as an opportunity to continue pushing for a clear rule book in the U.S. for crypto regulations.
On May 5, Coinbase CEO Brian Armstrong kept up the optimism during the Q1 earnings call:
We’re 100% committed to the U.S. I founded this company in the United States because I saw that rule of law prevails here. That’s really important, and I’m actually really optimistic on the U.S. getting this right.
He then added:
When I go visit DC, there is strong bipartisan support for Congress to come in and create new legislation that would create a clear rule book in the U.S. and I think it’s really important for America to get this right.
Speculation that Coinbase may soon leave the U.S. also stems from the fact that it opened CIE (Coinbase International Exchange) this week.
But as Coinbase presented it, it’s not an escape from the U.S., but “the next chapter of the company’s Go Deep, Go Broad global expansion strategy.” The exchange assured of its dedication to the U.S. market once again in the March 2 CIE announcement:
Coinbase chose to become a public company in the US because we believe the US would best be served by embracing this fundamental innovation, but we’re also focused on international markets, many of which are moving forward with strategies to become “crypto hubs.”
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