The US cryptocurrency industry is experiencing a significant shift as key regulatory and political developments reshape its landscape. Coinbase has announced plans to hire 1,000 new employees following what CEO Brian Armstrong describes as the most pro-crypto stance from Congress in years. Meanwhile, the Office of the Comptroller of the Currency (OCC) has eased restrictions on banks engaging with digital assets, signaling a potential thaw in the regulatory environment.
Coinbase Announces Major US Hiring Spree Following Trump’s Pro-Crypto Stance
Coinbase, the largest cryptocurrency exchange in the United States, has announced an aggressive hiring plan in response to what its CEO, Brian Armstrong, describes as the most favorable political climate for crypto in years. The exchange plans to bring on approximately 1,000 new employees in 2025, significantly expanding its workforce as regulatory uncertainty gives way to a more supportive stance from the government.
Armstrong made the announcement in a video posted to X on March 7, speaking outside the White House in Washington, D.C. after attending the White House Crypto Summit. He credited President Donald Trump’s pro-crypto policies and influence over Congress as the driving factor behind the expansion.
“Coinbase is planning to hire about 1,000 people in the United States this year as a direct result of his actions already in the first 60 days or so,” Armstrong stated.
The move marks a major shift from the company’s approach in recent years, during which it significantly reduced its workforce in response to challenging market conditions and regulatory pressure.
The planned expansion would increase Coinbase’s total workforce by approximately 27%, according to data from Stockanalysis, which indicates that the company currently employs around 3,772 people. Armstrong’s statements suggest that a more crypto-friendly US administration could be a game changer for companies in the sector, spurring job creation and renewed industry growth.
His comments come after months of intensifying regulatory scrutiny from agencies such as the Securities and Exchange Commission (SEC), which has launched multiple enforcement actions against Coinbase and other industry players over the past year. However, with Trump’s vocal support for digital assets and the recent shift in political sentiment, Armstrong appears confident that the regulatory tide is turning.
The Coinbase CEO was joined at the White House event by other major figures in the crypto industry, including Gemini co-founders Tyler and Cameron Winklevoss, MicroStrategy’s Michael Saylor, and Crypto.com CEO Kris Marszalek. Their participation signals growing optimism that the US government may take a more constructive approach to digital asset regulation in the coming months.
Despite the positive hiring news, Coinbase’s stock (COIN) has not been immune to broader market volatility. The exchange’s stock price has dropped 22.4% over the past month, closing at $217.45 on March 7, according to Google Finance data.
The decline in COIN’s value coincides with a broader downturn in both the crypto and traditional financial markets. Investors have reacted negatively to Trump’s proposed tariffs on China, Canada, and Mexico, announced on Feb. 1. The tariffs have contributed to uncertainty in global markets, with digital assets and related equities experiencing increased selling pressure.
Coinbase’s stock struggles also come despite the company’s improving financial performance. The exchange has benefited from a resurgence in trading activity following the approval of spot Bitcoin exchange-traded funds (ETFs) in the US last year, which has led to increased institutional engagement with crypto.
Coinbase’s hiring plans stand in stark contrast to its recent history of job cuts. Just over a year ago, in January 2023, Armstrong announced that the company would lay off 950 employees as part of a cost-cutting strategy designed to reduce operating expenses by 25%. The layoffs followed a prolonged crypto bear market that saw digital asset prices tumble and trading volumes decline sharply.
At the time, Armstrong reassured investors that the company remained financially stable, stating that Coinbase was “well capitalized” and that crypto “isn’t going anywhere.” However, he emphasized the need to maintain operational efficiency in the face of market challenges.
The recent turnaround in hiring suggests that Armstrong and his team now see a brighter future for the industry, particularly in the United States. If regulatory pressure continues to ease and institutional adoption accelerates, Coinbase’s bet on expansion could pay off in the long run.
Will the Pro-Crypto Shift Be Sustained?
While Armstrong’s optimism is clear, questions remain about the long-term regulatory outlook for crypto in the US. The SEC’s enforcement actions against Coinbase, Binance, and other major exchanges have left the industry wary of continued legal battles, even as the political climate appears to be shifting in favor of digital assets.
Trump’s influence on crypto policy remains uncertain, as his support for the industry is relatively recent. Although his administration previously took a more cautious approach toward digital assets, he has since expressed enthusiasm for the sector, particularly as it relates to innovation and economic growth.
Coinbase’s decision to embark on a large-scale hiring spree shows the shifting dynamics in the crypto industry. Armstrong’s statements suggest that the exchange is positioning itself to take advantage of a more favorable political and regulatory environment in the US. While market turbulence and regulatory uncertainty remain, the renewed confidence from one of the industry’s biggest players could signal a turning point.
With institutional interest growing and policy shifts on the horizon, 2024 could be a transformative year for the cryptocurrency sector. Whether Coinbase’s aggressive expansion strategy will pay off remains to be seen, but one thing is clear: the exchange is betting on a future where the US is a leader in the global crypto economy.
OCC Eases Crypto Banking Rules Following Trump’s Pledge to End Crackdown
In related news, the US Office of the Comptroller of the Currency (OCC) has eased restrictions on how national banks and federal savings associations can interact with cryptocurrency firms. The announcement came just hours after US President Trump declared his intent to end “Operation Chokepoint 2.0,” a widely criticized campaign that restricted crypto businesses’ access to banking services.
The OCC’s new guidance, issued in Interpretive Letter 1183 on March 7, marks a dramatic reversal of the stringent policies that have long hindered banks from engaging with crypto companies. The agency confirmed that crypto custody, stablecoin-related activities, and participation in distributed ledger networks are now fully permissible for OCC-supervised financial institutions.
”Crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks such as distributed ledger are permissible for national banks and federal savings associations,” the OCC stated in its latest policy update.
The shift in regulatory stance is a significant win for the cryptocurrency industry, which has long been pushing for greater financial inclusion and banking support.
Under the previous regulatory framework, banks were required to obtain “supervisory nonobjection” before engaging in crypto-related activities, adding layers of bureaucratic red tape. However, the latest OCC guidance removes this requirement, effectively streamlining banks’ ability to work with crypto firms.
“Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC,” said Rodney E. Hood, Acting Comptroller of the Currency.
The cryptocurrency industry has widely welcomed the OCC’s policy update, viewing it as a necessary correction after years of what many perceived as regulatory overreach. However, Caitlin Long, the CEO of Custodia Bank and a prominent advocate for crypto-friendly banking policies, warned that the battle isn’t over yet.
In a post on X on March 7, Long stated that Operation Chokepoint 2.0 “isn’t over” until both the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) also rescind their restrictive policies against crypto businesses.
Other key figures in the industry echoed similar sentiments, emphasizing that while the OCC’s stance is a step in the right direction, the broader regulatory environment must also shift to fully unlock banking services for crypto companies.
The OCC’s move comes on the heels of Donald Trump’s pledge to roll back restrictive banking policies targeting the crypto industry. Speaking at the White House Crypto Summit, Trump made it clear that he intends to put an end to what he described as an unfair crackdown.
“Some people really suffered, it was ridiculous what they were doing. In the end, they came around, but they came around for the wrong reasons, only because they wanted votes,” Trump said.
Trump was referring to Operation Chokepoint 2.0, a government-led initiative that has significantly impacted the ability of crypto firms to access traditional banking services. Industry advocates have long argued that banks were pressured to close the accounts of crypto businesses, effectively blocking money transfers and freezing essential financial operations.
“They strong-armed banks into closing crypto businesses and entrepreneurs, effectively blocking money transfers to and from exchanges. They weaponized the government against the entire industry,” Trump added.
While Trump’s comments were met with applause from industry leaders, it remains to be seen whether his administration (should he return to office) would follow through with meaningful policy reforms.
Regulatory Battles Intensify as Congress Investigates Banking Restrictions
The debanking of crypto firms has been a major point of contention in US regulatory and political circles. Industry groups have consistently called for greater clarity and fairness in how financial institutions interact with digital asset companies.
Earlier this year, Wyoming Senator Cynthia Lummis raised concerns about potential misconduct within the FDIC regarding Operation Chokepoint 2.0. On Jan. 16, Lummis sent a letter to the agency alleging that whistleblowers had informed her that the FDIC had destroyed key documents related to the initiative.
With the OCC’s updated guidance, many in the industry are now wondering whether traditional banks will resume servicing crypto businesses or remain cautious until further regulatory clarity emerges.
Historically, banks have been reluctant to engage with cryptocurrency firms due to fears of regulatory backlash. Even with the OCC’s latest move, financial institutions may remain hesitant unless the Federal Reserve and FDIC follow suit in adjusting their own policies.
Nonetheless, the OCC’s decision sends a strong signal that the tide may be turning in favor of greater financial inclusion for crypto businesses. The move is expected to provide much-needed relief to the industry, allowing crypto firms to explore new banking partnerships and expand their operations within a more accommodating regulatory framework.
This article was originally Posted on Coinpaper.com
