Coinbase could become a leader in the crypto market
Coinbase could become a leader in the crypto market
Coinbase could take the lead from Binance after the largest cryptocurrency exchange and its CEO, Changpeng Zhao, agreed to a deal with the U.S. Department of Justice to settle charges.
Binance announced that it had reached a settlement with the U.S. Department of Justice, the Commodity Futures Trading Commission, the Office of Foreign Assets Control, and the Financial Crimes Enforcement Network that resulted in Changpeng Zhao stepping down as CEO of the exchange and a $4.37 billion fine.
This development is most beneficial to Binance's closest competitor, cryptocurrency exchange Coinbase, which has recently gained immense popularity due to its successful growth strategy, FXStreet reported.
"We now have the opportunity to start a new chapter in this industry... Americans won't have to turn to unregulated offshore exchanges to benefit from this technology," commented Brian Armstrong, CEO of Coinbase, on his X (Twitter) page about the Binance deal.
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However, Armstrong emphasized that Coinbase has stuck to its compliance principles from the beginning, which will ultimately make it a leader in the industry.
"We obtained licenses, hired compliance officers and lawyers, and made it clear that our brand is built on trust," the Coinbase CEO said.
John E. Deaton, a lawyer for Ripple, also believes that Coinbase will lead the crypto market, especially since the exchange appears on the spot ETF applications of several institutional players, including BlackRock, Chicago Board Options Exchange (CBOE), Fidelity, and Vanguard.
It's worth noting that Coinbase operates a significant portion of the U.S. Bitcoin spot trading platform, which accounts for a substantial portion of U.S. Bitcoin and dollar trading.
Since John E. Deaton believes that Coinbase is likely to be the leader, he has increased his investment in the exchange's stock.
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Recall that Coinbase has not been able to completely avoid regulatory demands, and its standoff with the Securities and Exchange Commission has been ongoing for several months.
The SEC has filed a lawsuit against Coinbase, accusing it of acting as an unregistered broker and exchange in violation of federal securities laws.
Recall that Changpeng Zhao resigned from his post.
