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Zhao Changpeng steps down! Coinbase benefits? Coin stock price fails to celebrate rally

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Zhao Changpeng steps down! Coinbase benefits? Coin stock price fails to celebrate rally

Although "knowing when to let go is the hardest," Binance founder Changpeng Zhao (CZ) agreed to resign early this morning, pleaded guilty, and Binance was fined $4.3 billion. Former Global Head of Regional Markets Richard Teng will take over as CEO. Coinbase founder Brian Armstrong stated that this will "mark the beginning of a new chapter in the industry"!

Brian Armstrong: Coinbase Looks to the Future, Embracing Compliance

Coinbase's founder Brian Armstrong made the following statement:

Since Coinbase was established in 2012, we have always had a long-term vision. I knew that we needed to embrace compliance to become a cross-generational company that stands the test of time. We obtained licenses, hired compliance and legal teams, and made it clear that our brand is about customer trust and rule compliance. We aim to increase transparency and raise trust standards, which is why we became a publicly traded company in 2021.

This means we cannot always move as fast as others. Taking a compliant approach is more difficult and costly. If a product is not legal, you cannot launch all the products that customers want. But this is the right thing to do because we believe in the rule of law.

Today's news once again proves that this difficult path was the right decision. We now have the opportunity to open a new chapter in the industry. Due to the lack of clear regulations, we faced many challenges operating in the U.S., and I hope today's news will be a catalyst for ultimately achieving this goal. Americans should not have to go to unregulated offshore exchanges to benefit from this technology. This industry should be established on U.S. soil in a compliant manner and in accordance with U.S. laws. We will stay in the U.S. because we believe in economic freedom, and the U.S. democratic system will ultimately achieve this.

Decentralization and cryptocurrency are powerful tools for renewing the financial system and establishing a more economically free global economy. We are just getting started!

Coinbase General Counsel: Cryptocurrency Will Not Disappear!

Coinbase General Counsel Paul Grewal also watched the developments of the Binance case online yesterday and shared his thoughts on Twitter, stating that cryptocurrency will not disappear because of this!

However, to create a prosperous crypto economy in the U.S., we need clear and reasonable regulations so that U.S. consumers can access secure domestic crypto services.

Solely enforcement-based regulation in the U.S. will only increase consumer risks and drive customers and innovation out of the U.S. Legislation is crucial for protecting U.S. consumers and nurturing responsible markets.

Coinbase has a long-term strategy of prioritizing compliance with local and international laws, even if it slows growth or increases costs. Compliance builds trust, which is the foundation of our business.

Trust is at the core of our mission. We are gaining the trust of a global community that recognizes the potential of cryptocurrency in promoting economic freedom and opportunities. We are committed to growing at the speed of trust to renew the financial system.

Coinbase Stock Continues to Decline

Coinbase's stock fell slightly with the overall market yesterday, but after the dust settled on the Binance ruling, Coinbase's stock continued to drop over 2% after hours. It seems that despite strong competition and an epic judicial crackdown on competitors, Coinbase, emphasizing its compliance, still has a tough road ahead, as its lawsuit with the SEC remains unresolved, and U.S. cryptocurrency legislation is still nowhere to be seen.