Coinbase CEO criticizes SEC, plans to invest abroad

Coinbase's CEO, Brian Armstrong, criticized the U.S. SEC and announced plans to invest more outside the U.S. In November 2023, Coinbase shares surged over 60%, marking their second-best monthly performance since going public in 2021. The company's stock climbed over 250% in the first 11 months of 2023. Meanwhile, former FTX CEO Sam Bankman-Fried faces potential life imprisonment, and Binance founder Changpeng Zhao pleaded guilty to violations. Binance's market share fell, and customers withdrew over $1 billion after the Justice Department's $4.3 billion settlement. Mizuho analysts noted a 20% increase in Coinbase shares since Zhao's settlement. Coinbase is the fourth-largest global exchange by daily volume and has a market cap of close to $30 billion. The company's shares fell 2.4% to $124.72 on Thursday. Coinbase executives have considered leaving the U.S. for a jurisdiction with clearer crypto regulations. Regulatory approval of U.S. spot bitcoin exchange-traded funds could impact Coinbase's business. JPMorgan analysts have a neutral rating on Coinbase stock and a $80 price target.