The brokerage was already sued by the SEC last year, showing fragility in its relationship with the American government.
Coinbase app close to bitcoin and dollar bill
Coinbase, the largest American cryptocurrency broker, announced this Monday (1st) that it was chosen by the US government to custody and negotiate assets confiscated in legal cases.
According to data from Arkham Intelligence, today the USA has more than R$77 billion in cryptocurrencies, of which R$75 billion is in Bitcoin.
As a comparison, the American government owns 213,543 bitcoins, just 13 thousand less than Microstrategy. The sum represents more than 1% of the entire BTC supply, 21 million units.
US Government Will Use Coinbase to Custody and Trade Cryptocurrencies
The American government had already transferred R$1.3 billion in Bitcoin last week to the Coinbase brokerage. This movement, as well as other previous ones, could be seen in real time through block explorers.
However, with the new partnership with Coinbase, it is possible for the US to send all of its cryptocurrencies to the exchange's custody service (Coinbase Custody).
Therefore, it will be impossible to know when the government is about to liquidate its seized billions. This can be good since the market has great liquidity, being able to absorb such sales without major changes in price, and, generally, the movements only cause panic.
Sales will be made on Coinbase Prime. Both services are already used by other private giants, including managers behind ETFs and various companies.
In a statement, the broker stated that it already works with all the main American agencies, from local to federal, and that its mission is to promote a safe and efficient market.
“Today, the USMS, an agency of the U.S. Department of Justice responsible for asset seizures, announced the selection of Coinbase Prime to provide advanced trading and custody services for the “Class 1” (large-cap) digital assets it manages. ”
“As of March 31, 2024, Coinbase protected assets worth US$330 billion (R$1.8 trillion),” the broker continued. “Coinbase recorded an institutional trading volume of US$256 billion (R$1.4 trillion) in the first quarter of 2024.”
🚨Coinbase will provide custody of cryptocurrencies for the American government. pic.twitter.com/UJNJcdF3ul
— Livecoins (@livecoinsBR) July 1, 2024
Coinbase and the US government aren't that friendly
It is worth noting that Coinbase's relationship with the American government is not all flowers. This is because the brokerage was already sued by the SEC in June last year, accused of offering trading in securities.
Regarding the American elections, Brian Armstrong, founder and CEO of Coinbase, seems to be on the fence. In a recent speech released by DLNews, the executive noted that cryptocurrencies are an issue for both Democrats and Republicans.
“Both parties are recognizing that they need to resolve this issue. Cryptocurrencies have arrived.”
At the time of writing, Coinbase shares are up 2.6% on the Nasdaq in the last 24 hours.
🔔 If you liked our content and news, send a tip to support our channel and follow us for more information!
