Crypto

[NEWS] Bitwise executive says Coinbase benefits from hostile regulatory environment

2024/08/09 09:15 (Updated 2024/12/13 14:01)
Editors of Iolite
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[NEWS] Bitwise executive says Coinbase benefits from hostile regulatory environment

The regulatory environment is favorable

Matt Hougan, CIO of cryptocurrency management company Bitwise, said he believes the current hostile regulatory environment for crypto assets in the United States is "a benefit to Coinbase."

This comes after the SEC (US Securities and Exchange Commission) recently issued a Wells Notice to Robinhood. He argued that this environment has enabled cryptocurrency exchange Coinbase to draw out its capabilities, leading to solid revenues and helping it raise funds and promote its business interests.

Coinbase has been at odds with the SEC, but it reported revenues of $1.6 billion in the first quarter of 2024, including from transaction fees.

Hougan then noted that Coinbase is diversifying its services beyond its core cryptocurrency exchange business. These include the growth of USD Coin (USDC), a US dollar-pegged stablecoin built on Ethereum, and the offering of futures trading outside the US.

SEC's actions against cryptocurrency-related companies

The SEC issued a Wells Notice to Uniswap, a major DEX, and Consensys, a blockchain company, last month, and to Robinhood, a US stock trading app, on the 6th of this month.

A Wells Notice is a warning that the SEC will take legal action against a company or individual. All of them are alleged to have offered unregistered securities to customers, in violation of the Securities Act.

Coinbase was also sued by the SEC last year for offering unregistered securities, as well as operating unregistered exchange, brokerage, clearing, and other services.

Reference:Hogan X
Image: Shutterstock

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July 2025 issueReleased on 2025/05/30
Interview Iolite FACE vol.14 Charles Hoskinson, founder and CEO of Cardano/Input Output Global PHOTO & INTERVIEW Mariko Mabuchi Special feature: "Considerations on cryptocurrency-related policies in Japan and the US", "Blockchain guide from Japan", "Huge position liquidation occurs at Hyperliquid! A new, unanticipated crisis in decentralized finance", "Sakana AI, a generative AI startup from Japan that is attracting a lot of attention", "Prepare for a recession: correlation between finance and anomalies" Crypto Journey: "Web 3.0 from the perspective of the 'King of Debate'" Interview with Hiroyuki Special series: Virtual Nishi: "Cryptocurrency market trends and key points for interpreting them" Series: Tech and Future Toshinao Sasaki, etc.