Consultant to a competing exchange in an unofficial capacity here.
My impression is that Coinbase is basically operating in their previous (non-exchange) business in a manner that is not at all to the letter of current US law; the 'beg for forgiveness' model. A lack of regulatory enforcement of their position, combined with expansion in to other business areas basically points toward the corruption of the US regulatory system. At this point I'd bet that some calls using pre-established relationships between their investors / board members and regulators are going on. This is the reason why other companies do not like doing business in the US: government meddling / selective enforcement, arbitrary decisions, painfully expensive/slow moving licensing and approvals processes, ultimately resulting in an unfair market.
On both sides of the Atlantic, it is only a little overstated to say that we preach individualism and competitive capitalism, and practice socialism. - Milton Friedman, 1994, from the introduction to The Road to Serfdom by F.A. Hayek.
My impression is that Coinbase is basically operating in their previous (non-exchange) business in a manner that is not at all to the letter of current US law; the 'beg for forgiveness' model. A lack of regulatory enforcement of their position, combined with expansion in to other business areas basically points toward the corruption of the US regulatory system. At this point I'd bet that some calls using pre-established relationships between their investors / board members and regulators are going on. This is the reason why other companies do not like doing business in the US: government meddling / selective enforcement, arbitrary decisions, painfully expensive/slow moving licensing and approvals processes, ultimately resulting in an unfair market.
On both sides of the Atlantic, it is only a little overstated to say that we preach individualism and competitive capitalism, and practice socialism. - Milton Friedman, 1994, from the introduction to The Road to Serfdom by F.A. Hayek.