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Speaker 1: We were joined by Paul Greywell Coinbase as chief legal officer. Paul,

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Speaker 1: thank you for joining us on the heels of this filing.

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Speaker 1: This is one hundred and one pages asking for a dismissal.

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Speaker 1: But beyond talking about the case itself, what I want

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Speaker 1: to talk about is some of the arguments you make here,

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Speaker 1: because you do talk about the SEC's process and vetting

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Speaker 1: Coinbase to begin with, prior to the IPO.

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Speaker 2: What do you tell.

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Speaker 1: People that the secse's job here was to kind of

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Speaker 1: have disclosures first and not necessarily questioning the company's business merits.

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Speaker 2: At that time? There is some question about whether that

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Speaker 2: argument stands. Well.

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Speaker 3: Good morning, Fanale, it's great to be with you. You

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Speaker 3: are absolutely correct that in April twenty twenty one, Coinbase

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Speaker 3: did list as a public company, and of course that

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Speaker 3: listing only was permitted after a six month exhauster review

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Speaker 3: by the SEC of our draft s one, our draft

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Speaker 3: registration statement and many many many documents, data polls, and

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Speaker 3: all the rest that were provided to the SEC so

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Speaker 3: that they could evaluate what kind of business was coinbased running.

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Speaker 3: Were we listing digital assets that fell within the scope

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Speaker 3: of the definition of a security under the federal securities laws.

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Speaker 3: What kind of assurances could investors have that this was

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Speaker 3: an appropriate investment to make under the federal law. The

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Speaker 3: fact of the matter is that when the SEC ultimately

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Speaker 3: permitted US to list in April twenty twenty one, they

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Speaker 3: did so under a very specific statutory mandate. The laws

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Speaker 3: that govern the SEC's authority in this area are clear

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Speaker 3: the SEC must give due regard to both the public

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Speaker 3: interest and the protection of investors. And so for an

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Speaker 3: exchange commission to now claim two years later, more than

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Speaker 3: two years later, that somehow we were running an unlawful

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Speaker 3: enterprise when their mandate requires to consider the protection of

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Speaker 3: investors and their very name suit requires them to apply

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Speaker 3: their expertise and securities and exchanges, doesn't It doesn't, It

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Speaker 3: doesn't make any sense.

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Speaker 2: Well, I'm kind of curious here.

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Speaker 3: You know.

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Speaker 1: Coinbase has said that the business model hasn't changed really

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Speaker 1: since CIPO, very materially, and the sense of it still

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Speaker 1: is in the heart of what the SEC has allowed.

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Speaker 1: But Coinbase has really added a lot more tokens to trade.

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Speaker 2: How hasn't it really changed?

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Speaker 3: Well, we have always looked to add assets that are

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Speaker 3: appropriate for not only our customers, but consistent with our

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Speaker 3: lawful authority. And finally, that's one of the reasons why

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Speaker 3: Coinbase has applied a rigorous vetting process in evaluating any

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Speaker 3: token or any crypto asset that has requested to be

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Speaker 3: listed on the platform. It's also one of the reasons

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Speaker 3: why more than ninety percent, ninety percent of the assets

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Speaker 3: that are taken under consideration and reviewed are rejected. And

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Speaker 3: so we're quite confident that our process is rigorous, that

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Speaker 3: it considers all of our legal obligations. And we're even

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Speaker 3: more confident because it's the exact same process that the

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Speaker 3: SEC reviewed back in early two twenty twenty one when

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Speaker 3: it allowed Coinbase to become a public company.

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Speaker 1: Now there's a lot of questions about how Coinbase plans

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Speaker 1: to expand abroad in the face of a lot of

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Speaker 1: what is happening in the United States, a lot of

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Speaker 1: the regulatory pushback across the industry. So what does this

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Speaker 1: mean for other potential places that you may expand Hong

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Speaker 1: Kong's lawmaker, for example, has invited Coinbase to apply and

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Speaker 1: register in the region.

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Speaker 2: Do you plan to well.

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Speaker 3: Coinbase has always operated as a global business because, of course,

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Speaker 3: digital assets and cryptocurrencies are very global, essentially global by nature.

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Speaker 3: In a recent quarter already something like twenty percent of

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Speaker 3: our top line revenue comes from our business operations and

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Speaker 3: markets overseas, and so operating in other jurisdictions. Looking for

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Speaker 3: other ways to expand is not only part of our history,

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Speaker 3: it's part of our mandate and our mission as a

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Speaker 3: company to bring cryptocurrency to everyone. We will always consider

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Speaker 3: the regulatory climate in every country in which we operate.

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Speaker 3: It is heartening to see countries all over the world,

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Speaker 3: the UK, Hong Kong, India, Singapore, the list goes on

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Speaker 3: and on adopting sensible rules for crypto that balance the

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Speaker 3: need to protect investors, of course, but also that promote

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Speaker 3: and protect innovation. It's just unfortunate that as the rest

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Speaker 3: of the world is rushing ahead, the US seems to

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Speaker 3: be leaving itself behind.

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Speaker 1: What kind of optimism do you have on kind of

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Speaker 1: another part of the market here, there's this question around tokens,

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Speaker 1: But then there's this huge question also around ETFs when

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Speaker 1: it comes to spot bitcoin trading. Here, Black Rocket filed

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Speaker 1: for that ETF, Bitcoin ETF and Coinbase is listed as

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Speaker 1: the custodian for those assets.

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Speaker 2: How much confidence do you have in.

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Speaker 1: The approval of a spot ETF, particularly the one you'll

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Speaker 1: be involved in.

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Speaker 3: Well, we take a lot of heart and have great

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Speaker 3: confidence that the market is responding to what Americans have

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Speaker 3: said about what they want in their financial future. You know, Chanale,

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Speaker 3: something like twenty percent of Americans have already bought or

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Speaker 3: sold digital assets in one form or fashion, and over

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Speaker 3: sixty percent believe that our current system needs a serious upgrade.

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Speaker 3: We think crypto is an important part of that, and

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Speaker 3: we think that the market is responding to the American

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Speaker 3: public's desire to have safe, regulated products as part of

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Speaker 3: their portfolio of financial services. When the government SEC in

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Speaker 3: particular stands in the way of that access, they're really

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Speaker 3: standing the way of what the American people have said

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Speaker 3: clearly they want.

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Speaker 2: We have to leave it here, Paul.

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Speaker 1: I will hope to have you back soon as we

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Speaker 1: watch both the ETF and the.

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Speaker 2: Approval process, as well as your case. Canc SEC. That

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Speaker 2: is Paul Graywell, coinbased Chief Legal Officer,