• Coinbase is reportedly in talks with institutional investors to open an overseas cryptocurrency exchange.
• Recent regulatory actions have posed a challenge to the advancement of the bitcoin and cryptocurrency industry in the US.
• The US government has been paying close attention to digital assets, while some states have shown their support for sovereign usage of bitcoin.
Coinbase Exploring Overseas Cryptocurrency Exchange
Coinbase has reportedly been in talks with institutional investors about opening up an overseas cryptocurrency exchange. Sources cited by Bloomberg stated that discussions centered around establishing an alternative venue outside of the main Coinbase marketplace for global clients. No decision on a location for the platform has been made yet.
Regulatory Challenges for Crypto Industry
Recent regulatory actions have led to a turnaround in sentiment regarding the advancement of the bitcoin and cryptocurrency industry in the United States. Major exchanges such as Kraken have settled with fines from the SEC, while Coinbase recently paid $100 million to New York state regulators over anti-money laundering violations.
White House Roadmap to Mitigate Crypto Risks
The current administration has taken steps towards regulating digital assets in America, releasing a “Roadmap to Mitigate Cryptocurrencies’ Risks” back in January 2023. The U.S Treasury has also begun research on how it can implement or adopt a CBDC, which may take form of either a privatized currency (like a stablecoin) or an adaption of the current system (i.e FedNow).
States Show Support For Bitcoin Usage
While federal governments seem keen on regulating digital assets rather than embracing them, some state governments such as Arizona and Wyoming are showing their support for sovereign usage of bitcoin and other cryptocurrencies within their borders. Attention should be paid to potential cracks showing up in U.S banking systems, and what this could mean for future monetary decisions moving forward.
It seems that America is taking steps towards regulating digital assets within its borders, but there are still varying opinions on how best move forward when it comes to crypto adoption and usage across various states within the country. Regardless, serious consideration should be given to building upon money that is built retain its value rather than debasing it through credit expansion cycles and ensuing impacts on banking systems overall if we hope for a prosperous future ahead