The information about Coinbase’s possible move to another jurisdiction did not appear by chance. First of all, the trading platform is experiencing problems due to inadequate regulation in the US. In particular, the SEC is actively threatening the exchange with a lawsuit, but also refuses to present a clear framework for regulating digital currencies in the country.

On top of this, Coinbase has managed to obtain a licence to operate in Bermuda. This will, among other things, allow the giant to launch its already announced international platform with support for cryptocurrency futures. Given this feature, US residents will not be allowed to interact with the exchange.

However, Coinbase CEO Brian Armstrong has now indicated a desire to remain in the US market.

Where will Coinbase operate?

Armstrong assured everyone that Coinbase remains exclusively committed to the US market in the long term. This will not be hindered even by the uncertainties with local regulators, which are now being felt more strongly than ever. Here is the businessman’s rejoinder.

Let me be clear: we are 100 per cent committed to the US. I founded this company in the United States because the rule of law prevails here. This is very important and I am really very optimistic that in America the regulators will get it right.

A recent situation with Coinbase's lawsuit against the U.S. Securities and Exchange Commission is also an indication of the rule of law in the United States. As it became known in the second half of this week, the court upheld the cryptocurrency company's initiative. Accordingly, the regulator must now not only explain its own decision to ignore Coinbase's request for nine months, but also eventually provide a comprehensive response. And if the Commission refuses to do so, Coinbase is likely to have cause for another lawsuit.

Armstrong’s stated optimism is primarily due to his confidence that Congress will soon pass a clear set of laws to regulate cryptocurrency companies. Accordingly, doing business for the latter in the US will become noticeably easier. He continues.

When I visit Washington, I see strong bipartisan support for the creation of new legislation that will give a clear understanding of cryptocurrency regulation in the US. I think it’s really important for America to get it right.

The only reason for caution in the Coinbase chief’s predictions remains a possible lawsuit against the SEC. As a reminder, the regulator has previously poisoned the exchange with a Wells notice, which indicates the end of the investigation and the likely imminence of litigation against Coinbase. That said, Armstrong is not going to silently comply with all of the Commission’s absurd demands – Coinbase management has repeatedly indicated that it is ready to defend its interests in court.

According to Cointelegraph’s sources, Coinbase’s business is not concentrated exclusively in the United States. As we told you, Coinbase’s subsidiary Coinbase International Exchange platform in Bermuda was also announced the day before – it was created specifically to implement margin trading of perpetual crypto futures.

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In addition to this Armstrong address, the important event of the week was also Coinbase’s financial report for the first quarter of 2023. During this period, the company’s net loss fell from $557 million in the fourth quarter of 2022 to $79 million in the first quarter of 2023, partly due to a 22 per cent increase in revenue to $736 million.

The better quarterly results for the financial statement came as a positive surprise to many and exceeded the expectations of some analysts. This led to Coinbase’s share price rising by 18 per cent overnight.

Total revenue in the form of commissions from large institutional investors on the Coinbase platform reached the $22.3 million bar. The same figure for individual traders rose to $352.4 million, an increase of about 14.1 percent from the previous quarter.

Overall, revenue from transactions on the exchange rose 16 per cent quarter-on-quarter to $375 million, although trading volumes remained roughly unchanged. The largest revenue for the quarter came from the steaming and interest-bearing deposit programs, with $240.8 million and $73.7 million respectively.

From a financial perspective, Coinbase is slowly recovering from a tough 2022, which was fraught with crisis and bankruptcy for many cryptocurrency companies. Given Armstrong’s words, we can conclude that Coinbase will stay in the US after all, and maybe even come to a compromise with the SEC.


We think that such statement of Brian Armstrong is absolutely logical. Still, despite the problems with regulators, Coinbase continues to operate successfully in the US and even has about half of this market in terms of trading volumes. Accordingly, the giant's activity in America is primarily important for itself. Well, as recent events show, if anything, the Securities and Exchange Commission can be dealt with in court.


For more news about the exchange, check out our cryptochat. There we discuss other important developments affecting the digital asset industry.