Coinbase CEO Warns US Business May Exit if Crypto Bill Fails
Coinbase CEO Brian Armstrong has warned that part of his company's business may exit the United States if a comprehensive crypto bill fails to pass. The legislation would define when a digital asset is a commodity versus a security and which regulator writes the rules, providing much-needed clarity in the current regulatory vacuum. Without statutory certainty, Armstrong said, Coinbase will continue building its U.S. operation but may shift some of its business offshore.
The company has already secured licenses in multiple offshore centers and launched an international exchange in Bermuda. Armstrong emphasized that he wants a law that can 'survive across administrations,' indicating that the industry no longer sees enforcement discretion or agency guidance as durable. The CEO's comments reflect a broader pattern: U.S. crypto firms are increasingly looking abroad for growth, with companies like Kraken, Gemini, and Ripple expanding their offshore operations in recent years.
The potential shift could have significant implications for U.S. institutional traders who rely on Coinbase's liquidity and for market makers, who may face higher costs and thinner markets as a result of fragmentation. In the long term, the United States could lose its role as a price-discovery hub for crypto assets to Asian or Middle Eastern markets.