Coinbase is making a substantial stride in its global expansion strategy by introducing spot cryptocurrency trading on its international exchange. Beginning December 14th, institutional traders can participate in Bitcoin (BTC) and Ether (ETH) transactions paired with the USDC stablecoin. Greg Tusar, head of institutional product development at Coinbase, highlighted the strategic significance of offering both spot and derivatives trading simultaneously in an interview with Bloomberg.
This expansion comes at a time when the U.S. Securities and Exchange Commission (SEC) is actively pursuing legal action against Coinbase. The SEC alleges that Coinbase has operated an unauthorized exchange, brokerage, and clearing agency, as part of a broader crackdown on high-profile cryptocurrency failures, including the notable collapse of FTX.
Kraken and Binance, other major exchanges, have also faced SEC scrutiny, accused of operating without proper registration. Both firms have contested the SEC’s allegations. The slow legislative progress on cryptocurrency regulations in the U.S. Congress adds complexity to the regulatory landscape.
Despite these challenges, the cryptocurrency market has shown partial recovery from its 2022 downturn. The resurgence is fueled, in part, by expectations that the SEC might soon approve its first spot Bitcoin ETFs. While Coinbase’s stock value has experienced significant growth this year, it remains below its peak valuation in 2021.
Coinbase initially launched its international exchange in May with the aim of reducing dependence on the U.S. market. The company plans to gradually introduce more tokens to the platform and eventually extend offshore spot trading services to retail investors as market liquidity improves.
