Brian Armstrong, CEO of Coinbase — one of the largest cryptocurrency exchanges in the United States — has warned that the company could be forced to shift part of its operations overseas if Congress fails to pass comprehensive cryptocurrency regulation.

Speaking during an interview at Capitol Hill, Armstrong emphasized that Coinbase's priority remains growing within the United States. However, he stressed that this objective depends on the establishment of a clear and durable legal framework for the digital asset industry.

Armstrong stated that Coinbase intends to keep the majority of its operations based in the US. For the broader sector to commit to long-term investments, he argued, the country needs more than its current regulatory approach. What is required, according to the CEO, is legal clarity that endures across changes in administration. Companies, investors, and users can only make long-term plans within a predictable regulatory environment, he noted.

The warning carries particular weight given that Coinbase has been engaged in ongoing legal proceedings with the Securities and Exchange Commission, which filed suit against the exchange in June 2023 alleging it operated as an unregistered securities exchange, broker, and clearing agency. The case is part of a broader pattern of SEC enforcement actions targeting major crypto firms under Chair Gary Gensler, who has maintained that most digital tokens qualify as securities subject to existing federal law. Crypto industry participants have repeatedly argued that this enforcement-centric strategy leaves companies without a clear compliance pathway.

The cryptocurrency legislation currently under discussion in Congress is critically important for the industry, Armstrong said. Delays or failure to enact regulations risk driving capital, startups, and users toward jurisdictions with clearer rules outside the United States, which could undermine the country's competitiveness in financial technology. A central question lawmakers are grappling with is whether digital assets should fall primarily under the jurisdiction of the SEC or the Commodity Futures Trading Commission, which traditionally regulates commodities and derivatives markets.

In recent years, the European Union's MiCA regulation, combined with the development of clearer legal frameworks for digital assets in jurisdictions such as the United Arab Emirates, Singapore, and Hong Kong, has prompted many crypto firms to rethink their global expansion strategies. MiCA, which began phasing into effect in 2024, establishes harmonized rules across EU member states for crypto-asset issuers and service providers — a contrast to the still-fragmented US approach. As part of its own international growth plans, Coinbase continues to apply for licenses in multiple countries to broaden its operations.

Armstrong's remarks come amid intensifying debate over the future of the crypto sector in the United States. Industry representatives are looking to new bills under consideration in Congress to provide clarity on which agency will oversee digital assets, the rules companies must follow, and the standards governing investor protection.

Source: Bitcoinsistemi