At the World Economic Forum (WEF) in Davos, Switzerland, Coinbase CEO Brian Armstrong praised US President Donald Trump for adopting crypto to “create economic freedom.” Armstrong attributed the heightened global interest in crypto by market leaders to Trump’s pro-crypto initiatives.
In a January 24 article posted on X, Armstrong noted that nearly every conversation he had with major market leaders revolved around the Trump administration’s potential plans for cryptocurrency, particularly a “Strategic Bitcoin Reserve.”
“As the company best positioned to help governments create a Strategic Bitcoin Reserve, these were valuable touch points.” The CEO said, referring to his company, Coinbase, a custody and trading services provider that could assist the US government to implement the digital asset stockpile.
Crypto and AI dominate discussions at the WEF
Armstrong, who attended Davos immediately after President Trump’s inauguration, observed that crypto and artificial intelligence were among the most talked-about topics at the forum. He spotlighted the “palpable energy” from leaders interested in using crypto as a tool to promote global economic freedom.
“So many see what President Millei, President Bukele, and President Trump have done, and understand that free markets are catalysts for prosperity. Socialism is on its way out. Economic freedom is in.”
The American billionaire pointed out that in the past meetings at Davos, economists were riding around the idea of creating a centralized government, supported by policies he dubbed as “stakeholder capitalism.”
He asserted that those proposals would cause a civilization slowdown, and he advised leaders to form a “coalition of economic freedom countries,” also hinting at Coinbase’s role in supporting the movement.
Armstrong also pointed out that major corporations, including banks, asset managers, and payment firms, are accelerating their investments in crypto, signaling an imminent surge in blockchain adoption.
“There are going to be more players and competition than ever in crypto and we welcome it all. We need crypto to update the entire global financial system to bring these benefits to everyone,” the 41-year old CEO denoted.
Coinbase’s legal challenges with the U.S. SEC, BiT Global continue
Last Wednesday, Coinbase filed a petition with the US Court of Appeals for the Third Circuit, seeking a ruling that cryptocurrency trades on its platform are not subject to federal securities laws.
According to a Bloomberg report, the US Securities and Exchange Commission (SEC) sued Coinbase in 2023 for allegedly operating as an unregistered securities exchange. The financial regulator warrants that just like stocks and bonds, all digital tokens qualify as securities under US law.
If the court classifies crypto as securities, trading platforms like Coinbase would be forced to undergo a registration process with the SEC.
Coinbase is also defending itself against a lawsuit filed by BiT Global over the exchange’s decision to delist Wrapped Bitcoin (wBTC). On December 13, 2024, BiT Global issued a complaint arguing that Coinbase’s actions harmed the wBTC market.
Through a January 21 appeal submitted to the US District Court for the Northern District of California, Coinbase’s legal team requested the dismissal of BiT Global’s lawsuit. Coinbase announced in November 2024 that it would suspend wBTC trading starting December 19.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on December 19, 2024, on or around 12pm ET.
— Coinbase Assets 🛡️ (@CoinbaseAssets) November 19, 2024
The exchange’s legal team is arguing that the decision to delist wBTC was based on “unacceptable risks” linked to Sun’s alleged control of the token.
The crypto trading platform also surmised that BiT Global failed to demonstrate any substantial market harm caused by the delisting. Last week, in a virtual meeting, Federal Judge Araceli Martínez-Olguín declined to issue a restraining order to prevent Coinbase from delisting wBTC.
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