• Coinbase is reportedly in talks with institutional investors to open an overseas cryptocurrency exchange.
• Recent regulatory actions and the current administration’s attention to digital assets have impacted exchanges in the U.S., such as Kraken settling for $30 million in fines and Coinbase owing $100 million to New York.
• US federal government has expressed intent to regulate a government currency rather than Bitcoin, while state governments are showing their support for sovereign usage of Bitcoin.
Coinbase Talks With Institutional Investors
Coinbase has been engaging in conversations with institutional investors regarding opening up an international cryptocurrency exchange outside of its main marketplace. Sources indicate that no decision on the location of this platform has been made yet.
Regulatory Actions Impacting U.S Exchanges
Recent regulatory decisions have shifted sentiment towards bitcoin and cryptocurrencies within the United States, leaving some major exchanges facing penalties. For example, Kraken was required to pay a $30 million fine as part of a SEC lawsuit while Coinbase had to pay $100 million to the state of New York after not conducting sufficient background checks on customers opening accounts.
White House Roadmap for Cryptocurrency Risks
In January 2023, The White House released a roadmap outlining how it intends to mitigate risks associated with cryptocurrencies. Furthermore, the US Treasury Department is researching how it can implement or adopt a CBDC (Central Bank Digital Currency). This could take form as a privatized currency (like a stablecoin) or an adaption of existing systems such as FedNow.
State Governments Show Support for Bitcoin
Although US federal government appears keen on regulating government currency rather than Bitcoin, several states including Arizona and Wyoming have demonstrated their support for using Bitcoin as a sovereign currency instead. This demonstrates that opinions remain divided on what path should be taken moving forward when it comes to US monetary policy decisions.
As cracks start appearing in the US banking system, serious consideration should be given towards building upon money that retains its value versus those that are impacted by credit expansion cycles and bank operations . It remains important for individuals and institutions interested in cryptocurrencies understand how each country’s regulations may affect them before investing or trading digital assets abroad.