Coinbase Aims for 1 Billion Users by 2023

Lena Smith
Lena Smith Crypto
4 Min Read

Coinbase is taking steps to prepare for the unpredictable by controlling what can be controlled. The crypto sector endured a tumultuous year of bankruptcies and regulations that encouraged its naysayers, with FTX’s downfall being the last straw. However, Coinbase CEO Brian Armstrong made his ambitions clear during today’s fourth-quarter 2022 earnings call; he wants a cryptocurrency user base across the globe to reach one billion users! He knows this goal is achievable through careful planning and control over key components.

Coinbase: “Our Business Decisions Are To Maximize Safety For Customers”

In the last quarter of 2022, Coinbase experienced a dramatic drop-off in users, losing nearly 200,000 customers compared to the preceding fiscal period.

According to Brian Armstrong, Coinbase does not act as a market maker that trades against their customers or issues exchange tokens. They remain confident in their position that no securities laws were violated and the products offered, such as staking products, are not considered security-related entities; this includes USD Coin (USDC).

As 2023 draws near, Coinbase expects an upsurge of regulatory focus, hoping its solid foundation will make them thrive rather than suffer due to these conditions. Their primary goal is always to guarantee customer safety while striving for legitimacy within the crypto economy and ensuring longevity for themselves.

Armstrong proudly declared, “We have been able to make our business a legitimate market leader regulated by the system. Moreover, we have demonstrated tremendous resilience in 2022 even when faced with significant situations of instability.”

coinbase: "our business decisions are to maximize safety for customers"

“US Is Slightly Left Behind on Crypto Regulations”

Brian Armstrong expressed how policy is his prime focus for this year, as Coinbase has a big role in crypto education, advocacy, and regulation. He informed investors on the call that he’s been spending countless hours working with legislators located in Washington, D.C. With these efforts combined, Armstrong is confident to further the progress of cryptocurrency integration into society.

The potential and enthusiasm for bringing the crypto industry to America are high, as Europe has already passed extensive legislation that makes it clear, they are ahead of us. To catch up with them, there is broad bipartisan support among policymakers who want legislation in place. Most importantly, though, we need the 50 million Americans using cryptocurrency to make their voices heard so that regulations can be created to protect all users from danger when engaging in this activity.

Coinbase CEO Armstrong Focuses on Two Regulations in Particular

When asked by an investor on the earnings call what his definition of a regulatory accomplishment for Coinbase would be, Brian Armstrong named two. He explained that “bringing stablecoins into the scope of regulation is one,” and delineating between CFTC and SEC’s jurisdiction to decide what constitutes a commodity, security, or something else entirely is another.

Paul Grewal, Coinbase’s General Counsel, revealed that their business has been compliant for over 10 years, and they are determined to work with policymakers to provide transparency regarding the industry for customers. He further elaborated that it is imperative for them to encourage public rulemaking to ensure clarity on all fronts.

Last July, the company released a widely-discussed petition letter to the Securities and Exchange Commission (SEC), asking them to solicit input from stakeholders regarding regulatory measures for digital asset operations. The comprehensive document outlined how these guardrails would help promote investor safety while maintaining an innovative marketplace.

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I’m a freelance writer and journalist from Toronto, covering real estate, mortgage and personal finance for publications like Forbes, Money, Business Insider, Fortune, US News & World Report, The Motley Fool, CBS News, Hearst newspapers, The Balance, HousingWire, Money Under 30, Bankrate, Builder Magazine, Multifamily Executive, The Simple Dollar, and more.
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