- Earlier this year, the SEC served Coinbase with a notice from Wells.
- Coinbase CEO Brian Armstrong said the SEC is on a “lonely crusade” as chair Gary Gensler takes a “more anti-crypto view.”
- Armstrong responded again to a suggestion he made last month that the company might have to move its headquarters overseas.
Brian Armstrong, Co-Founder and CEO of Coinbase Inc. , during the Singapore FinTech Festival, in Singapore, November 4, 2022.
Brian Van Der Beek | bloomberg | Getty Images
Coinbase CEO Brian Armstrong doubled down on his criticism of US Securities and Exchange Commission Chairman Gary Gensler on Monday, but added that the exchange will not leave the US despite the regulatory uncertainty the company faces in the country.
Coinbase has come under intense regulatory scrutiny in the US recently after a bleak year for the cryptocurrency industry that saw majors like FTX and Terra fail, prices plummet, and investors lose billions of dollars in the process.
The SEC earlier this year provided Coinbase with a Notice of Wells, a letter the regulator sends to a company or company at the conclusion of an SEC investigation that states that the SEC plans to take enforcement action against them.
At the center of the regulator’s dispute with Coinbase, and another group of crypto companies, is the allegation that it sells unregistered securities to investors. Coinbase disputes this.
“The SEC is a little weird here,” Armstrong told CNBC correspondent Dan Murphy in an interview in Dubai on Monday. Take a more anti-crypto view for a reason.”
“I don’t think he’s necessarily trying to regulate the industry as much as he might restrict it. But he has filed some lawsuits, which I think are totally unhelpful to the industry in the US in a big way, but it’s also an opportunity for Coinbase to go and get that clarity from the courts that we feel would really benefit the crypto industry. And so is the United States more broadly.”
The SEC was not immediately available for comment when contacted by CNBC.
Armstrong also backtracked on a suggestion he made last month that the company might have to move its headquarters overseas.
“Coinbase is not going to go offshore,” Armstrong said. “We will always have an American presence…but the United States is a little behind at the moment.”
“I would say we are seeing more deliberate approaches, for example, in the European Union [European Union]They’ve already passed comprehensive crypto legislation, and the UK has been incredibly welcoming, and for us out there, and that was a hub where we decided to service the UK market. “
At a fintech conference in London in April, Armstrong said Coinbase might consider moving out of the US if the current regulatory headwinds persist. He said the US “has the potential to be an important market in cryptocurrencies” but at the moment it does not provide regulatory clarity.
If this continues, he said, Coinbase will look at options to invest more abroad, including moving from the US to another location.
However, Armstrong said Monday that Coinbase was looking to increase its international investment, noting that it was “very interested” in the UAE as a country to invest more in. Dubai has been a remarkably favorable regulator when it comes to crypto, courting businesses from the likes of Binance and Kraken.
Noting that it was his first visit to the UAE, Armstrong said, “I am here to learn, listen and meet with the relevant regulators both in Abu Dhabi and here in Dubai and determine if this is a good place for us to serve a large area of the world.”
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