1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:07,800 --> 00:00:07,920
Speaker 2: Now.

3
00:00:07,960 --> 00:00:10,080
Speaker 3: Another company we've been keeping a close eye on is

4
00:00:10,160 --> 00:00:12,160
Speaker 3: Coinbase and it's set to join the S and P

5
00:00:12,280 --> 00:00:15,840
Speaker 3: five hundred next week. The company's CEO has also been

6
00:00:15,840 --> 00:00:18,639
Speaker 3: calling for lawmakers to pass a stable coin bill. A

7
00:00:18,680 --> 00:00:21,880
Speaker 3: lot of the financial industry watching that bill very very closely.

8
00:00:22,120 --> 00:00:25,239
Speaker 3: We are joined now by Coinbas's CEO who's on Capitol

9
00:00:25,280 --> 00:00:29,280
Speaker 3: Hill right now, Brian Armstrong. And Brian, thanks for joining

10
00:00:29,360 --> 00:00:32,519
Speaker 3: us while you're doing your trip at the hill. But

11
00:00:32,640 --> 00:00:35,240
Speaker 3: first we have to really start with your big moment,

12
00:00:35,280 --> 00:00:37,800
Speaker 3: which is at S and P five hundred inclusion. You

13
00:00:37,920 --> 00:00:43,320
Speaker 3: have been focusing here on expanding your world in financial services.

14
00:00:43,800 --> 00:00:46,479
Speaker 3: Discover was taken out, you're added in. What does it

15
00:00:46,520 --> 00:00:47,320
Speaker 3: say about the moment?

16
00:00:48,840 --> 00:00:51,160
Speaker 1: Yeah, well, it's a huge moment for crypto to now

17
00:00:51,159 --> 00:00:53,560
Speaker 1: be in the S and P five hundred with Coinbase entering,

18
00:00:53,600 --> 00:00:56,440
Speaker 1: and it means that crypto is here to say, people

19
00:00:56,440 --> 00:00:59,160
Speaker 1: are going to have crypto exposure in all their four

20
00:00:59,160 --> 00:01:01,640
Speaker 1: oh one k's and it points a little bit to

21
00:01:01,680 --> 00:01:03,680
Speaker 1: I think where the future of financial services is going.

22
00:01:03,720 --> 00:01:06,760
Speaker 1: Cryptos a technology to update the financial system. We actually

23
00:01:06,840 --> 00:01:09,600
Speaker 1: launched our own index coin fifty, which is the top

24
00:01:09,680 --> 00:01:13,119
Speaker 1: fifty crypto assets market cap weighted, and someday we hope

25
00:01:13,160 --> 00:01:15,520
Speaker 1: people might actually, you know, feel the same way about

26
00:01:15,520 --> 00:01:17,640
Speaker 1: getting the S and P five hundreds of getting in

27
00:01:17,640 --> 00:01:18,760
Speaker 1: the coin fifty index.

28
00:01:18,880 --> 00:01:19,959
Speaker 2: So it's a great moment.

29
00:01:20,000 --> 00:01:22,520
Speaker 3: We were talking a little earlier about e Toro's ipl You

30
00:01:22,520 --> 00:01:25,600
Speaker 3: see other entrants like that come into public markets, wondering

31
00:01:25,640 --> 00:01:27,720
Speaker 3: what it means for you because e Toro is not

32
00:01:27,800 --> 00:01:30,560
Speaker 3: going to be the only one in terms of entering

33
00:01:30,560 --> 00:01:35,200
Speaker 3: that crypto versus stocks world. Do you think coinbase will

34
00:01:35,280 --> 00:01:39,120
Speaker 3: ever get into traditional way equity trading, or at least

35
00:01:39,160 --> 00:01:42,160
Speaker 3: tokenized equity trading in a much larger way.

36
00:01:43,800 --> 00:01:46,360
Speaker 1: Yeah, well, we think that all asset classes are being

37
00:01:46,400 --> 00:01:49,919
Speaker 1: tokenized crypto. Again, it's this technology to update the financial system.

38
00:01:49,960 --> 00:01:53,920
Speaker 1: That means every company, every fintech, every bank, every payment company,

39
00:01:53,960 --> 00:01:57,040
Speaker 1: even non financial service companies are going to be integrating

40
00:01:57,240 --> 00:01:59,680
Speaker 1: crypto payments. It's kind of like when the Internet came out,

41
00:01:59,720 --> 00:02:02,480
Speaker 1: and first you had dot com startups and then comp

42
00:02:02,520 --> 00:02:04,680
Speaker 1: every fortune five hundred company uses the Internet. So we

43
00:02:04,680 --> 00:02:06,840
Speaker 1: think it's going to be very similar and actually this

44
00:02:06,880 --> 00:02:09,000
Speaker 1: is a good thing for coinbase because many of these

45
00:02:09,040 --> 00:02:10,720
Speaker 1: companies when they come to crypto, they're going to.

46
00:02:10,720 --> 00:02:12,200
Speaker 2: Buy our products and services.

47
00:02:12,560 --> 00:02:17,160
Speaker 1: We actually power crypto custody trading payments, especially with stable coins,

48
00:02:17,160 --> 00:02:19,920
Speaker 1: which is a big new emerging activity for lots of

49
00:02:19,919 --> 00:02:23,280
Speaker 1: companies already, and so we're excited about that happening now

50
00:02:23,280 --> 00:02:27,680
Speaker 1: on you specifically asked about tokenized equities. We're excited about those,

51
00:02:28,000 --> 00:02:30,240
Speaker 1: and we want to lean into the crypto native solutions,

52
00:02:30,320 --> 00:02:32,880
Speaker 1: not trade traditional securities in the way that many other

53
00:02:32,919 --> 00:02:35,680
Speaker 1: companies do. We think there's unique advantages to having this

54
00:02:35,680 --> 00:02:38,240
Speaker 1: come on chain, and so we're excited to explore that.

55
00:02:38,280 --> 00:02:40,480
Speaker 1: We've We've met with, for instance, the sec Task Force

56
00:02:40,800 --> 00:02:43,079
Speaker 1: on this recently, and there seems to be a general

57
00:02:43,120 --> 00:02:46,280
Speaker 1: willingness to have these kind of asset classes come on chain.

58
00:02:46,360 --> 00:02:49,880
Speaker 3: Now let's stay posted on that front. Of course, there's

59
00:02:49,919 --> 00:02:52,760
Speaker 3: a big question on how soon that could happen now,

60
00:02:52,760 --> 00:02:55,760
Speaker 3: Brian stable coins, because part of the discussion that is

61
00:02:55,800 --> 00:02:59,080
Speaker 3: looming large in Washington is of course that stable coin bill.

62
00:02:59,440 --> 00:03:01,920
Speaker 3: Now call a trip I made down to Coinbase's New

63
00:03:02,000 --> 00:03:04,720
Speaker 3: York offices. I spoke with one of your deputies, Jesse Pollock,

64
00:03:04,960 --> 00:03:07,320
Speaker 3: and he showed me the way that people are transacting

65
00:03:07,800 --> 00:03:12,519
Speaker 3: on Coinbase via stable coin, often at no fee. I'm

66
00:03:12,560 --> 00:03:15,280
Speaker 3: really wondering from your perspective to the extent that when

67
00:03:15,320 --> 00:03:18,600
Speaker 3: you see a bill passed, how much that could set

68
00:03:18,760 --> 00:03:22,160
Speaker 3: off stable coin payments, peer to peer payments in a

69
00:03:22,160 --> 00:03:25,040
Speaker 3: way that's cheaper than the financial industry does it today.

70
00:03:26,680 --> 00:03:27,919
Speaker 2: Yeah, well, you're right.

71
00:03:27,960 --> 00:03:31,880
Speaker 1: Stable coin adoption, for like USDC, it has grown enormously

72
00:03:32,000 --> 00:03:34,400
Speaker 1: and a lot of it's happening on Base, which is

73
00:03:34,400 --> 00:03:37,680
Speaker 1: a layer two solution that Coinbase helped create. So it's

74
00:03:37,680 --> 00:03:40,160
Speaker 1: a very exciting moment where we're seeing stable coin adoption. Now,

75
00:03:40,240 --> 00:03:42,440
Speaker 1: we also need to make sure that this technology gets

76
00:03:42,440 --> 00:03:44,520
Speaker 1: built here in the US, and that's what this stable

77
00:03:44,520 --> 00:03:46,160
Speaker 1: coin bill is really about.

78
00:03:46,720 --> 00:03:47,760
Speaker 2: It's a historic moment.

79
00:03:47,840 --> 00:03:50,000
Speaker 1: There's a lot of interest from senators on both sides

80
00:03:50,000 --> 00:03:52,520
Speaker 1: of the isle that I've met with today to get

81
00:03:52,520 --> 00:03:55,000
Speaker 1: this legislation done, and that's what we're here to try

82
00:03:55,040 --> 00:03:55,520
Speaker 1: and help do.

83
00:03:55,960 --> 00:03:59,720
Speaker 2: Now. The details matter, and there's bits of language.

84
00:03:59,360 --> 00:04:01,000
Speaker 1: That are being to go siated right up into the

85
00:04:01,040 --> 00:04:03,960
Speaker 1: last minute, but we're here to try to underscore the

86
00:04:04,040 --> 00:04:06,160
Speaker 1: urgency of this and the fifty two million Americans who've

87
00:04:06,200 --> 00:04:08,680
Speaker 1: used crypto really want to see this legislation get passed

88
00:04:09,000 --> 00:04:10,880
Speaker 1: so that this industry can get built here on shore

89
00:04:10,880 --> 00:04:11,400
Speaker 1: in America.

90
00:04:11,560 --> 00:04:13,560
Speaker 3: Well, you say words matter. What are the words now

91
00:04:13,600 --> 00:04:15,600
Speaker 3: that you would want to see changed as it hits

92
00:04:15,600 --> 00:04:17,240
Speaker 3: the final finish line?

93
00:04:17,760 --> 00:04:19,640
Speaker 2: Yeah, I mean there's a couple examples for you.

94
00:04:19,680 --> 00:04:23,120
Speaker 1: One is that you know, DeFi is something that is

95
00:04:23,160 --> 00:04:25,280
Speaker 1: separate from financial services. We don't think it should be

96
00:04:25,320 --> 00:04:28,640
Speaker 1: included in AML provisions. AML provisions make a lot of

97
00:04:28,680 --> 00:04:33,520
Speaker 1: sense applied to the centralized intermediaries like exchanges and custodians,

98
00:04:33,560 --> 00:04:37,039
Speaker 1: things that coinbases core business, but DeFi should be excluded

99
00:04:37,040 --> 00:04:39,720
Speaker 1: from that, and recent language updates we've seen seem to

100
00:04:39,720 --> 00:04:40,599
Speaker 1: indicate that that's.

101
00:04:40,440 --> 00:04:42,200
Speaker 2: The path they're going on.

102
00:04:42,200 --> 00:04:44,840
Speaker 1: One other area for you to think about is there

103
00:04:44,839 --> 00:04:48,000
Speaker 1: are some prohibitions on paying interest and yield in some

104
00:04:48,080 --> 00:04:50,080
Speaker 1: of the drafts or some of the language that we

105
00:04:50,080 --> 00:04:52,040
Speaker 1: were made aware of. We think that this is a

106
00:04:52,360 --> 00:04:54,120
Speaker 1: you know, banks should have to compete on a level

107
00:04:54,120 --> 00:04:56,560
Speaker 1: playing field with crypto. We think that paying interest in

108
00:04:56,640 --> 00:04:59,240
Speaker 1: yield to customers is good, is a consumer benefit. We

109
00:04:59,279 --> 00:05:01,559
Speaker 1: actually think to American consumers should be able to benefit

110
00:05:01,600 --> 00:05:04,440
Speaker 1: from that, and any company, whether your bank, crypto company,

111
00:05:04,440 --> 00:05:06,200
Speaker 1: should be able to compete on that front.

112
00:05:06,279 --> 00:05:07,200
Speaker 2: Now there's a.

113
00:05:07,200 --> 00:05:09,000
Speaker 1: Lot of debate back and forth about that, but these

114
00:05:09,040 --> 00:05:10,800
Speaker 1: are examples of the kinds of issues that are coming

115
00:05:10,839 --> 00:05:12,680
Speaker 1: down into the line. We want to make sure that

116
00:05:12,839 --> 00:05:15,680
Speaker 1: you know perfect is not the enemy of good enough,

117
00:05:15,720 --> 00:05:18,320
Speaker 1: and getting this legislation passed is the highest priority.

118
00:05:18,520 --> 00:05:20,480
Speaker 3: I'm wondering where you see this going. We've even heard

119
00:05:20,520 --> 00:05:22,799
Speaker 3: from the Bank of America CEO saying that they would

120
00:05:22,800 --> 00:05:24,760
Speaker 3: see a Bank of America stable coin one day. Once

121
00:05:24,800 --> 00:05:28,520
Speaker 3: you see this bill pass Now, for you, would you

122
00:05:28,640 --> 00:05:33,080
Speaker 3: be considering issuing a stable coin at coinbase.

123
00:05:34,560 --> 00:05:37,360
Speaker 1: But we have a great partnership with Circle on USDC,

124
00:05:37,560 --> 00:05:39,560
Speaker 1: and so that's the primary stable coin that we like

125
00:05:39,640 --> 00:05:43,080
Speaker 1: to advocate for. We think it's the fastest growing major

126
00:05:43,080 --> 00:05:45,640
Speaker 1: stable coin, it's the most trusted, it's the most compliant.

127
00:05:46,320 --> 00:05:49,040
Speaker 1: But to your point about you know, the bank CEOs,

128
00:05:49,040 --> 00:05:51,240
Speaker 1: et cetera, we want everyone to succeed here. We think

129
00:05:51,240 --> 00:05:53,400
Speaker 1: that banks should be able to participate in stable coins.

130
00:05:53,760 --> 00:05:55,560
Speaker 1: It's a huge opportunity and we want to make sure

131
00:05:55,760 --> 00:05:58,800
Speaker 1: any potential legislation doesn't prohibit them or us from doing that.

132
00:05:59,560 --> 00:06:02,960
Speaker 3: So Circle for a moment, Circle is in talks to

133
00:06:03,040 --> 00:06:05,000
Speaker 3: go public do you think anything will change with your

134
00:06:05,040 --> 00:06:08,839
Speaker 3: relationship once it becomes a public company, And frankly, would

135
00:06:08,880 --> 00:06:12,039
Speaker 3: you ever consider buying Circle? I mean, your relationship with

136
00:06:12,080 --> 00:06:14,800
Speaker 3: the company has gotten so close, why not just have

137
00:06:14,880 --> 00:06:15,480
Speaker 3: it in house?

138
00:06:17,080 --> 00:06:19,160
Speaker 2: Yeah, well, we're very excited for their success.

139
00:06:19,600 --> 00:06:23,760
Speaker 1: USDC has been an enormous outcome, and so they deserve

140
00:06:23,839 --> 00:06:24,200
Speaker 1: a ton of.

141
00:06:24,200 --> 00:06:24,719
Speaker 2: Credit for that.

142
00:06:25,400 --> 00:06:28,920
Speaker 1: Them going public doesn't change anything about our commercial relationship.

143
00:06:29,400 --> 00:06:31,479
Speaker 1: But in terms of other deals we might consider in

144
00:06:31,480 --> 00:06:33,560
Speaker 1: the future, I mean that of course would be up

145
00:06:33,560 --> 00:06:36,039
Speaker 1: to them in US but you know, nothing to announce today.

146
00:06:37,000 --> 00:06:40,599
Speaker 3: Are you actively looking at other acquisition targets now? You

147
00:06:40,680 --> 00:06:43,520
Speaker 3: made a lot of news recently with the Derabiit acquisition. Hankkit,

148
00:06:43,600 --> 00:06:45,839
Speaker 3: I will ask you about that, but there is a

149
00:06:45,920 --> 00:06:48,440
Speaker 3: question about how much more dry powder you have to

150
00:06:48,520 --> 00:06:48,920
Speaker 3: do more.

151
00:06:50,880 --> 00:06:53,919
Speaker 1: Yeah, we're always looking at M and A opportunities. You know,

152
00:06:53,960 --> 00:06:55,960
Speaker 1: we do have a pretty large balance sheet that could

153
00:06:55,960 --> 00:06:58,000
Speaker 1: be put to use here, and of course, part of

154
00:06:58,040 --> 00:06:59,800
Speaker 1: the benefit of being a public company now and yes

155
00:07:00,000 --> 00:07:02,680
Speaker 1: five hundred is that you have somewhat of a liquid

156
00:07:02,720 --> 00:07:07,040
Speaker 1: currency to do that. So we're looking at acquisition opportunities constantly.

157
00:07:07,480 --> 00:07:09,360
Speaker 1: It doesn't mean we swing at every pitch, we want

158
00:07:09,360 --> 00:07:12,240
Speaker 1: it to be the right opportunity, because the hard part

159
00:07:12,280 --> 00:07:15,360
Speaker 1: is not buying the company, it's actually successfully integrating it.

160
00:07:15,400 --> 00:07:18,000
Speaker 1: But we've made a number of acquisitions recently. For instance,

161
00:07:18,000 --> 00:07:21,120
Speaker 1: on Base, we acquired a couple of startups. We're looking

162
00:07:21,120 --> 00:07:24,880
Speaker 1: at international opportunities that could aggregate share companies that do

163
00:07:24,920 --> 00:07:26,440
Speaker 1: things similar do we do, and then also things that

164
00:07:26,480 --> 00:07:28,200
Speaker 1: could just accelerate our product.

165
00:07:27,880 --> 00:07:31,680
Speaker 3: Roadmap on derebit. Very curious, of course, this was one

166
00:07:31,720 --> 00:07:35,200
Speaker 3: of the larger acquisitions we've seen in the crypto community,

167
00:07:35,480 --> 00:07:39,720
Speaker 3: a very very milestone moment for coinbase as well. It's

168
00:07:39,720 --> 00:07:43,400
Speaker 3: a derivative exchange, and do you expect it to win

169
00:07:43,520 --> 00:07:47,000
Speaker 3: approval to operate in the US? If so, how soon?

170
00:07:48,800 --> 00:07:49,640
Speaker 2: Yeah, you're correct.

171
00:07:49,680 --> 00:07:52,480
Speaker 1: So it is a derivatives exchange, and that's a big

172
00:07:52,520 --> 00:07:57,080
Speaker 1: push for US. International derivatives trading has been a huge

173
00:07:57,240 --> 00:07:59,160
Speaker 1: area for crypto. It's the vast majority of all crypt

174
00:07:59,200 --> 00:08:01,960
Speaker 1: trading volume actions and we are excited to do that

175
00:08:02,000 --> 00:08:04,440
Speaker 1: both internationally where we operate, and eventually to bring it

176
00:08:04,480 --> 00:08:06,520
Speaker 1: into the US. I don't have an exact timeframe for

177
00:08:06,640 --> 00:08:09,640
Speaker 1: you on that, but we believe that having spot trading

178
00:08:09,880 --> 00:08:12,960
Speaker 1: options and futures all on one unified platform, and we

179
00:08:13,000 --> 00:08:16,520
Speaker 1: can be the trusted counterparty to these traders. That's going

180
00:08:16,600 --> 00:08:19,280
Speaker 1: to be a winning solution both in the US and internationally.

181
00:08:21,000 --> 00:08:24,360
Speaker 3: So what about the future a little more. I'm really

182
00:08:24,400 --> 00:08:27,160
Speaker 3: curious about how you're viewing the tone coming out of

183
00:08:27,280 --> 00:08:31,440
Speaker 3: Washington when it comes to the future of crypto. What

184
00:08:31,480 --> 00:08:34,160
Speaker 3: do you think, besides the table, the stable coin Bill

185
00:08:34,200 --> 00:08:36,640
Speaker 3: will be the biggest change in the industry over the

186
00:08:36,679 --> 00:08:37,600
Speaker 3: next four years.

187
00:08:39,160 --> 00:08:41,360
Speaker 1: Yeah, well, getting legislation passed, of course, would be a

188
00:08:41,440 --> 00:08:44,000
Speaker 1: huge milestone with stable coins and then and market structure

189
00:08:44,200 --> 00:08:47,120
Speaker 1: as I mentioned, But I think the other big opportunity

190
00:08:47,160 --> 00:08:50,160
Speaker 1: on the horizon right now is that stable coins are

191
00:08:50,320 --> 00:08:53,040
Speaker 1: and payments are becoming a bigger and bigger area of

192
00:08:53,080 --> 00:08:55,959
Speaker 1: the economy. I mean, I think ultimately stable coins will

193
00:08:55,960 --> 00:08:59,360
Speaker 1: power the majority of all payments in global GDP or

194
00:08:59,360 --> 00:09:02,560
Speaker 1: in the economy large and crypto is going to become

195
00:09:02,600 --> 00:09:04,760
Speaker 1: the majority of the financial system. It is updating the

196
00:09:04,760 --> 00:09:07,760
Speaker 1: financial system in many ways, so that's going to happen

197
00:09:07,800 --> 00:09:12,560
Speaker 1: across you know, revitalizing our credit markets. There's features that

198
00:09:12,559 --> 00:09:16,480
Speaker 1: coinbase has launched recently, like defive borrow lend, which got

199
00:09:16,520 --> 00:09:18,960
Speaker 1: over one hundred million dollars in loans in one hundred days.

200
00:09:18,960 --> 00:09:20,600
Speaker 2: It's growing like wildfire.

201
00:09:21,240 --> 00:09:24,400
Speaker 1: It's going to update the capital formation markets, how people

202
00:09:24,480 --> 00:09:27,240
Speaker 1: raise money to start a company or to build an

203
00:09:27,240 --> 00:09:32,440
Speaker 1: apartment complex. It's going to tokenize traditional securities, bring them

204
00:09:32,480 --> 00:09:35,880
Speaker 1: online for twenty four to seven trading, allowing people markets

205
00:09:35,920 --> 00:09:37,720
Speaker 1: all over the world to have a level playing field

206
00:09:37,760 --> 00:09:42,720
Speaker 1: and participate in those So, whether it's payments, credit, securities

207
00:09:43,320 --> 00:09:45,760
Speaker 1: in a new gold standard, you know, with bitcoin, I

208
00:09:45,760 --> 00:09:48,280
Speaker 1: think crypto truly is updating the financial system, and we're

209
00:09:48,280 --> 00:09:50,720
Speaker 1: going to get to this world eventually where there's a

210
00:09:50,840 --> 00:09:55,160
Speaker 1: transnational economy that is not controlled by any one country.

211
00:09:55,880 --> 00:09:59,280
Speaker 1: The long tail of fiat currencies probably don't need to exist,

212
00:09:59,320 --> 00:10:01,760
Speaker 1: they could be replaced by bitcoin, but the major ones,

213
00:10:01,800 --> 00:10:04,600
Speaker 1: we'll each have stable coins which are thriving. So it's

214
00:10:04,640 --> 00:10:06,840
Speaker 1: a bright future if we can update the financial system

215
00:10:06,840 --> 00:10:08,440
Speaker 1: and create more economic freedom for people.

216
00:10:08,960 --> 00:10:11,560
Speaker 3: Brian, I'm curious about the conversation around a US strategic

217
00:10:11,600 --> 00:10:15,240
Speaker 3: Bitcoin reserve. More so, I'm also curious whether coinbase will

218
00:10:15,240 --> 00:10:16,000
Speaker 3: be the custodian.

219
00:10:18,280 --> 00:10:20,400
Speaker 1: Well, it's definitely a historic moment for the United States

220
00:10:20,400 --> 00:10:24,520
Speaker 1: of America to declare bitcoin as a strategic asset. That

221
00:10:24,640 --> 00:10:27,480
Speaker 1: was a huge moment I think underappreciated in the markets actually,

222
00:10:28,000 --> 00:10:30,160
Speaker 1: And you know, I believe that they're going through an

223
00:10:30,240 --> 00:10:33,720
Speaker 1: RFP process now, and we're of course throwing our hat

224
00:10:33,760 --> 00:10:36,200
Speaker 1: in the ring to hopefully be that provider there. You know,

225
00:10:36,200 --> 00:10:39,640
Speaker 1: we actually provide crypto services, whether that's custody or trading

226
00:10:39,679 --> 00:10:44,160
Speaker 1: to over one hundred and forty government institutions at the federal, state,

227
00:10:44,200 --> 00:10:46,640
Speaker 1: local level, not just in here in the US, but

228
00:10:46,720 --> 00:10:49,160
Speaker 1: in other countries as well. So I think we would

229
00:10:49,200 --> 00:10:51,560
Speaker 1: be the perverred provider, I hope. But we'll throw our

230
00:10:51,559 --> 00:10:52,920
Speaker 1: hat in the ring and they should run a fair

231
00:10:52,920 --> 00:10:53,840
Speaker 1: and orderly process.

232
00:10:54,440 --> 00:10:57,720
Speaker 3: It's interesting because you see very mixed responses from people

233
00:10:57,760 --> 00:11:02,720
Speaker 3: across the crypto community around the administration's approach to crypto,

234
00:11:02,840 --> 00:11:07,960
Speaker 3: but particularly the president's approach to crypto. Bloomberg recently reported

235
00:11:08,000 --> 00:11:11,080
Speaker 3: that the top buyers of the meme coin that are

236
00:11:11,080 --> 00:11:14,120
Speaker 3: buying for seats at the White House dinner or the

237
00:11:14,880 --> 00:11:18,800
Speaker 3: President's dinner. For those meme coin holders, many of these

238
00:11:18,840 --> 00:11:22,800
Speaker 3: buyers are likely foreign based on what we have seen

239
00:11:23,160 --> 00:11:27,280
Speaker 3: of the purchasers of these coins. Now, from your perspective,

240
00:11:27,440 --> 00:11:30,560
Speaker 3: what does this say about how much activity has moved

241
00:11:30,600 --> 00:11:34,520
Speaker 3: offshore and does it create an issue for the way

242
00:11:34,840 --> 00:11:38,160
Speaker 3: that crypto is evolving on shore in the United States.

243
00:11:40,080 --> 00:11:42,760
Speaker 1: Yeah, well, I'm not sure about the numbers specifically on

244
00:11:42,800 --> 00:11:45,080
Speaker 1: the Trump meme coin, but I know that written large,

245
00:11:45,120 --> 00:11:48,520
Speaker 1: the crypto industry has largely moved offshore from the US

246
00:11:48,600 --> 00:11:50,480
Speaker 1: because of the lack of clarity of rules in the

247
00:11:50,559 --> 00:11:53,640
Speaker 1: last four or five years, especially, so I'd say it's

248
00:11:53,720 --> 00:11:54,880
Speaker 1: roughly eighty percent.

249
00:11:54,640 --> 00:11:55,960
Speaker 2: Offshore at this point.

250
00:11:56,200 --> 00:12:00,320
Speaker 1: And for people who care about national security rules law,

251
00:12:00,720 --> 00:12:02,200
Speaker 1: you know, that's a huge issue. We need to make

252
00:12:02,200 --> 00:12:05,640
Speaker 1: sure that this gets brought onshore into the regulatory perimeter.

253
00:12:06,000 --> 00:12:08,520
Speaker 1: And whether people that love crypto or hate crypto, they

254
00:12:08,520 --> 00:12:11,840
Speaker 1: should be for legislation which does that. And that's a

255
00:12:11,840 --> 00:12:14,240
Speaker 1: lot of what these urgency of these bills getting passed,

256
00:12:14,320 --> 00:12:16,080
Speaker 1: even including the stable coin bill tomorrow.

257
00:12:16,240 --> 00:12:18,280
Speaker 3: What do you make more largely to the president's approj

258
00:12:18,320 --> 00:12:20,560
Speaker 3: on crypto. There are people who are on one hand,

259
00:12:20,559 --> 00:12:23,680
Speaker 3: are very happy that he's pushing the initiatives forward in

260
00:12:23,720 --> 00:12:26,000
Speaker 3: the United States, but there are also people who are

261
00:12:26,040 --> 00:12:30,280
Speaker 3: frustrated that his own projects are taking finances money away

262
00:12:30,320 --> 00:12:33,720
Speaker 3: from other projects, well.

263
00:12:33,880 --> 00:12:35,920
Speaker 1: From our perspective, We've been very happy with the President's

264
00:12:35,960 --> 00:12:37,800
Speaker 1: approchon crypto. I mean, he said that he wants the

265
00:12:37,840 --> 00:12:40,120
Speaker 1: US to be the crypto capital of the world. He's

266
00:12:40,480 --> 00:12:43,160
Speaker 1: told Congress that he wants this legislation both for stable

267
00:12:43,160 --> 00:12:44,600
Speaker 1: coins and market structure to be.

268
00:12:44,600 --> 00:12:46,360
Speaker 2: Passed before the August recess.

269
00:12:46,720 --> 00:12:49,439
Speaker 1: You know, declaring a strategic bitcoin reserve here in the

270
00:12:49,520 --> 00:12:52,880
Speaker 1: US was an incredible milestone. So from our point of view,

271
00:12:52,920 --> 00:12:56,360
Speaker 1: it could not be a better outcome versus what we

272
00:12:56,400 --> 00:12:58,520
Speaker 1: saw over the last four years, where the lack of

273
00:12:58,559 --> 00:13:02,400
Speaker 1: clarity was really weaponized togat inst the industry. But what's

274
00:13:02,480 --> 00:13:05,000
Speaker 1: positive is that crypto is truly bipartisan. I mean, the

275
00:13:05,000 --> 00:13:07,839
Speaker 1: President's leadership here has been amazing, but I think that

276
00:13:08,320 --> 00:13:10,520
Speaker 1: Congress and especially in the Senate, the folks I talk

277
00:13:10,559 --> 00:13:13,640
Speaker 1: to you, there's now a strong bipartisan majority of people

278
00:13:13,640 --> 00:13:16,440
Speaker 1: who want to see pro crypto legislation get passed.

279
00:13:17,920 --> 00:13:19,320
Speaker 3: Right, I want to start off where we left off.

280
00:13:19,320 --> 00:13:22,480
Speaker 3: We're talking about other competitors in the space. E. Toro

281
00:13:22,760 --> 00:13:26,280
Speaker 3: being a new trading you know, publicly traded company, for example,

282
00:13:26,480 --> 00:13:29,840
Speaker 3: but also foreign companies that are entering the US potentially

283
00:13:30,200 --> 00:13:34,000
Speaker 3: because they're excited about lighter regulations or at least clearer

284
00:13:34,040 --> 00:13:37,240
Speaker 3: regulations and rules of the road. Do you see much

285
00:13:37,280 --> 00:13:39,520
Speaker 3: more competition ahead for Coinbase.

286
00:13:40,600 --> 00:13:43,120
Speaker 1: Yes, I mean actually, I think that many different companies

287
00:13:43,120 --> 00:13:45,559
Speaker 1: are now coming into crypto with this regulatory clarity on

288
00:13:45,600 --> 00:13:48,080
Speaker 1: the horizon. And you know, one way to look at

289
00:13:48,080 --> 00:13:50,359
Speaker 1: that is you know, oh, no, there's too much competition.

290
00:13:50,600 --> 00:13:52,160
Speaker 1: The other way to look at it is I think

291
00:13:52,160 --> 00:13:54,240
Speaker 1: it's an incredible improvement because you know, you have to

292
00:13:54,240 --> 00:13:58,280
Speaker 1: remember in the past the industry is just being attacked.

293
00:13:58,360 --> 00:14:01,079
Speaker 1: Our competitors were more like FTI and these kinds of companies.

294
00:14:01,160 --> 00:14:02,760
Speaker 1: I'd much rather be in the world we're in now,

295
00:14:02,800 --> 00:14:05,840
Speaker 1: where we have lots of companies coming in and by

296
00:14:05,880 --> 00:14:08,200
Speaker 1: the way, those are all potential customers of our products

297
00:14:08,240 --> 00:14:11,040
Speaker 1: and services. So to me, I just see tam expansion

298
00:14:11,240 --> 00:14:13,960
Speaker 1: when I see regulatory clarity, I think it's a huge unlock.

299
00:14:14,360 --> 00:14:16,080
Speaker 3: Brian, we're looking forward to seeing where it all goes,

300
00:14:16,080 --> 00:14:20,200
Speaker 3: that is Coinbased CEO Brian Armstrong. Of course, during his

301
00:14:20,360 --> 00:14:23,240
Speaker 3: visit to Washington, we're looking forward to getting a readout

302
00:14:23,440 --> 00:14:26,280
Speaker 3: because of course the rules are changing under the ground