The largest cryptocurrency exchange in the United States may be considering opening operations elsewhere.
Coinbase has reportedly been in talks with institutional investors about opening an overseas cryptocurrency exchange.
According to sources cited by Bloomberg, “discussions with market makers and investment firms have focused on the possibility of establishing an alternate venue – away from the main Coinbase market – for global clients.” The sources continued to explain that the company has yet to decide where the rig might base itself.
Recent regulatory actions have led to a shift in sentiment regarding the advancement of the bitcoin and cryptocurrency industry in the United States. Major exchanges have faced regulatory headaches, with Kraken settling for $30 million in fines in an SEC lawsuit, and Coinbase owes $100 million in New York State after regulators alleged that Coinbase “violated anti-money laundering laws by allowing users to open accounts without performing sufficient background checks.”
Additionally, the current administration has given particular attention to the development of digital assets in the United States, with the White House releasing a “Roadmap to Mitigate Cryptocurrency Risks” in January 2023. In addition to this , the US Treasury has begun research on how it can potentially implement or adopt a CBDC, which may take the form of a privatized currency (like a stablecoin), or, more likely, an adaptation of the current system, in the form of FedNow.
The path the U.S. federal government keeps showing it wants to take is a government-regulated currency, be it the dollar or the like, not bitcoin. But state governments have shown support for the sovereign use of bitcoin, including Arizona and Wyoming. This demonstrates that there are differing opinions on the best way forward for US monetary decisions.
Serious attention should, however, be paid to the current cracks in the US banking system and what it could mean for the future. Building on top of a currency designed to hold its value, as opposed to a degraded currency resulting from cycles of credit expansion and their impacts on the banking system, is relevant to a prosperous future.