Coinbase CEO says SEC is on ‘lone crusade,’ dials back on suggestion exchange may relocate

The CEO of cryptocurrency trade Coinbase, Brian Armstrong, doubled down on his criticisms of the U.S. Securities and Exchange Commission chief Gary Gensler Monday, however added the trade wouldn’t go away the U.S. regardless of the regulatory uncertainty the corporate is going through within the nation.

Coinbase has been below intense regulatory scrutiny within the U.S. currently following a grim yr for the crypto trade which noticed main corporations like FTX and Terra fail, costs plunge, and buyers lose billions of {dollars} within the course of.

The SEC earlier this yr served Coinbase with a Wells Notice, a letter that the regulator sends to an organization or agency on the conclusion of an SEC investigation that states the SEC is planning to convey an enforcement motion in opposition to them.

At the guts of the regulator’s dispute with Coinbase, and a bunch of different crypto corporations, is the allegation that it’s promoting unregistered securities to buyers. Coinbase disputes this.

“The SEC is a bit of an outlier here,” Armstrong informed CNBC’s Dan Murphy in an interview in Dubai Monday. “There’s kind of a lone crusade, if you will, with Gary Gensler, the chair there, and he has taken a more anti-crypto view for some reason.”

“I don’t think he’s necessarily trying to regulate the industry as much as maybe curtail it. But he’s created some lawsuits, and I think it’s quite unhelpful for the industry in the U.S. writ large, but it also is an opportunity for Coinbase to go get that clarity from the courts that we feel will really benefit the crypto industry and also the U.S. more broadly.”

The SEC was not instantly out there for remark when contacted by CNBC.

Armstrong additionally rowed again on a suggestion he made final month that the corporate could also be compelled to maneuver its headquarters abroad.

“Coinbase is not going to relocate overseas,” Armstrong stated. “We’re always going to have a U.S. presence … But the U.S. is a little bit behind right now.”

“I would say we’re seeing more thoughtful approaches, for instance, in the EU [European Union], they’ve actually already passed comprehensive crypto legislation, the U.K. has been incredibly welcoming, and for us there, and that’s been a hub where we’ve decided to serve the U.K. market.”

At a fintech convention in London in April, Armstrong stated that Coinbase might take into account relocating exterior the U.S. if the present regulatory headwinds persist. He stated the U.S. “has the potential to be an important market in crypto” however proper now is just not delivering regulatory readability.

If this goes on, he stated, then Coinbase would take into account choices of investing extra overseas, together with relocating from the U.S. to elsewhere.

Still, Armstrong stated Monday that Coinbase was trying to enhance its worldwide investments, stating it’s “very interested” within the United Arab Emirates as a rustic to do extra funding in. Dubai has been a notably favorable regulator with regards to crypto, courting business from the likes of Binance and Kraken.

Noting that it was his first go to to the UAE, Armstrong stated: “I’m here to learn and listen and meet with the relevant regulators both in Abu Dhabi and here in Dubai and decide if this is a good place for us to serve a large region of the world.”