Coinbase looks abroad and at home
Let's for a moment pretend cryptocurrencies hadn't just suffered a dramatic
selloff that on Monday left Bitcoin and second-ranked token Ether nursing their
steepest losses in years.
Before that happened, thanks in no small part to former President Donald Trump's pro-crypto overtures, the Bitcoin community was "arguably the most bullish it's ever been," said Rich Rosenblum, co-chief executive officer and co-founder of GSR Markets.
With speculation swirling that even Democratic nominee Kamala Harris would soften the government's approach to the industry if she's elected, hopes were high that a US landscape favorable to digital assets might emerge.
For some, they still are. "Even as we continue to face real challenges in the United States with the SEC in particular, we're seeing a resetting of that conversation at the political level," said Paul Grewal, chief legal officer of Coinbase Global Inc., which last year was sued by the Securities and Exchange Committee for allegedly running an unregistered securities exchange, broker and clearing agency.
Paul Grewal, chief legal officer at Coinbase, speaks at a conference in 2023. Photographer: Ting Shen/Bloomberg
One consequence is that global hubs for cryptoasset activity — which have been patiently cultivated by authorities in Singapore, Hong Kong, Dubai and Europe — may face a more challenging outlook. Already, venture firms are mulling more US investments and companies are weighing personnel moves.
Hubs like Hong Kong, where a separate batch of crypto ETFs has somewhat underwhelmed, must find ways to boost their appeal. "I think that as global regulators in hubs all over the world pay attention to that changing dynamic in Washington, they're going to respond in kind and up their own regulatory game," Grewal said.
Perhaps conscious that digital-asset sector detractors may frame this process as a race to the bottom, Grewal suggested that it instead constitutes "a race to the top."
Coinbase is keeping its options open in Asia, having received a full license to operate as a digital payment token service provider in Singapore last year. The exchange won't rule out pursuing other licenses in the region, said Grewal, speaking from a blockchain conference in Taipei.
Before that happened, thanks in no small part to former President Donald Trump's pro-crypto overtures, the Bitcoin community was "arguably the most bullish it's ever been," said Rich Rosenblum, co-chief executive officer and co-founder of GSR Markets.
With speculation swirling that even Democratic nominee Kamala Harris would soften the government's approach to the industry if she's elected, hopes were high that a US landscape favorable to digital assets might emerge.
For some, they still are. "Even as we continue to face real challenges in the United States with the SEC in particular, we're seeing a resetting of that conversation at the political level," said Paul Grewal, chief legal officer of Coinbase Global Inc., which last year was sued by the Securities and Exchange Committee for allegedly running an unregistered securities exchange, broker and clearing agency.
Paul Grewal, chief legal officer at Coinbase, speaks at a conference in 2023. Photographer: Ting Shen/Bloomberg
One consequence is that global hubs for cryptoasset activity — which have been patiently cultivated by authorities in Singapore, Hong Kong, Dubai and Europe — may face a more challenging outlook. Already, venture firms are mulling more US investments and companies are weighing personnel moves.
Hubs like Hong Kong, where a separate batch of crypto ETFs has somewhat underwhelmed, must find ways to boost their appeal. "I think that as global regulators in hubs all over the world pay attention to that changing dynamic in Washington, they're going to respond in kind and up their own regulatory game," Grewal said.
Perhaps conscious that digital-asset sector detractors may frame this process as a race to the bottom, Grewal suggested that it instead constitutes "a race to the top."
Coinbase is keeping its options open in Asia, having received a full license to operate as a digital payment token service provider in Singapore last year. The exchange won't rule out pursuing other licenses in the region, said Grewal, speaking from a blockchain conference in Taipei.
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