Coinbase, a leading US-based crypto exchange, highlighted its demand for regulatory clarity from the US SEC in its just-published investor letter. The exchange also emphasized its continuous support to pro-crypto candidates in the upcoming election.
It noted that its major goal is to achieve regulatory clarity for crypto and will continue to contest the same in its lawsuit with the securities regulator.
Coinbase Disclose Q1 Results, Highlights Legal Case With The SEC
In its latest investor letter, published on Thursday, May 2, Coinbase disclosed its first quarterly results. Surprisingly, the exchange noted that its revenue for the quarter exceeded its expectations despite the dynamic nature of the crypto market.
Moreover, the launch of spot Bitcoin ETFs within the US contributed to the output.
As against its expected revenue of $1.34 billion, Coinbase recorded a staggering $1.64 in Q1 2024. Its total transaction revenue in Q1 nearly tripled to $1.08 billion. Notably, transaction revenue remains the key driver of revenue for the exchange.
Also, the exchange amassed a revenue of $511 million from subscriptions and services in the first quarter.
Coinbase shares rose by almost 9% on May 2. On a year-to-date basis, the shares surged by approximately 32%, following its fivefold increase last year. According to data from Google Finance, COIN is up by 8.93% and trades at $228.85 as of 06:36 AM EST on May 3.
Further, Coinbase’s letter talked about the exchange’s ongoing legal battle with the US Securities and Exchange Commission (SEC). It noted the ruling of a Manhattan Federal Court in March. The court dismissed the regulator’s claims against Coinbase for operating as an unregistered broker through its Wallet services.
Also, the letter mentioned that the court denied Coinbase’s motion for a complete dismissal of the case. Coinbase also emphasized that its major demand from the SEC is clarity on crypto regulations, and it will continue on that path following the court ruling. The crypto exchange expressed confidence in the strength of its arguments and is prepared for the next phase of the case as the year progresses.
Coinbase Reveals Its Political Engagements With Fairshake PAC
Coinbase discussed its recent political engagements and donations. According to its letter, the exchange supports Fairshake PAC, a notable US super political action committee (PAC).
PAC routes are available for any pro-crypto candidate, irrespective of political party. Such support forms a foundation for a sustainable pro-crypto movement.
Coibase said Fairshake PAC understands the importance of regulations in enhancing transparency and preventing fraud. However, it opposes undue restrictive measures that could cloak or limit crypto trading.
During primary elections in March, crypto supporters reflected a remarkable impact in some states, including Texas, California, and Alabama. Their activities helped pro-crypto candidates scale across the primaries.
In addition, Fairshake spent millions of dollars to oppose Katie Porter, a renowned crypto critic, as Democratic Representative from California. Its lobbying efforts contributed to Porter’s defeat in the Senate race.
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