Pro-XRP Attorney Deaton Weighs in on Coinbase’s Contemplation of US Exit

Brian Armstrong, Coinbase’s CEO, recently disclosed that a departure from the United States is on the table for the exchange.

Pro-XRP attorney John Deaton has reacted to the recent statements from Brian Armstrong, CEO of Coinbase, in which the business executive disclosed that Coinbase could actually depart from the United States due to the prevailing regulatory uncertainty.

Armstrong made this disclosure while speaking at the FinTech Week in London, per a Bloomberg report today. The regulatory landscape in the United States has not been favorable to crypto firms and the local crypto industry, with several industry leaders bemoaning the slew of unfavorable enforcement actions. 

Against this backdrop, Armstrong revealed that Coinbase, which presently serves as America’s largest exchange, could consider leaving the country if the regulatory climate does not tilt towards favorable territories. “Anything is on the table, including relocating or whatever is necessary,” Armstrong disclosed.

According to Armstrong, the potential for the United States to become a significant market for cryptocurrencies is limited due to a lack of regulatory clarity. He further indicated that if clear guidelines for the crypto industry are not established in the U.S. within a few years, Coinbase may have to look for investment opportunities in other parts of the world.

Coinbase is the second exchange to highlight issues with the regulatory climate in the United States in the past few weeks. Exchange Bittrex announced last month that it would be winding down its U.S. operations, citing unfavorable regulations. Shortly after this announcement, the U.S. SEC charged Bittrex for operating an “unregistered securities exchange.” 

Coinbase has also had its fair share of regulatory run-ins with the SEC, as the agency continues to categorize some of the assets listed on the exchange as securities. Amid this trend, Coinbase is now considering relocating.

Deaton Reacts

Deaton weighed in on Coinbase’s consideration while responding to reports of a positive regulatory outlook for crypto assets in the United Arab Emirates. Deaton emphasized that countries such as the UAE are welcoming an influx of crypto firms while the U.S. is recording an exodus, calling attention to the Coinbase news.

Deaton highlighted that Coinbase has done everything to remain compliant, and even received permission to go public two years ago. According to the attorney, the difference between then and now is the emergence of “one unelected bureaucratic,” making reference to SEC Chair Gary Gensler.

Meantime in the United States ?? the largest exchange in the U.S. @coinbase, which has done everything it can to be compliant, is thinking of leaving the U.S. although TWO YEARS AGO it was allowed to go public by the SEC. What’s changed in two years?

One unelected bureaucratic. https://t.co/FEL5ixkWoP

— John E Deaton (@JohnEDeaton1) April 18, 2023

Furthermore, speaking on Gary Gensler’s Congress Hearing today, Deaton asserted that the crypto industry might not get any regulatory clarity from Congress in the coming years. “It is partisan politics as usual with American innovation being murdered in real-time. We must win in Court,” he remarked.