Coinbase Returns to San Francisco, Crypto Regulation and Self-Custody Trends Shape Industry

Coinbase Returns to San Francisco with Major Office Lease

Coinbase, the leading U.S. cryptocurrency exchange, has signed a long-term lease for 150,000 square feet of office space in San Francisco, marking a significant return to the city after previously paying $25 million in 2023 to terminate its former headquarters lease at 430 California St. The new office, located at 1090 Dr. Maya Angelou Lane in Mission Rock, will be the company’s largest single office and will occupy more than half of the newly constructed Building B, adjacent to Oracle Park. This move comes despite Coinbase’s continued commitment to a “decentralized” and remote-first workplace, with the majority of its approximately 3,800 employees retaining the option to work remotely.

The Mission Bay area, where the new office is situated, has become a hub for San Francisco’s tech boom, with OpenAI recently leasing nearly 1 million square feet nearby. Given that Mission Bay only offers about 2 million square feet of office space out of the city’s total 83 million, Coinbase’s options for such a large lease were limited. The company, valued at $60 billion and recently added to the S&P 500, has been searching for office space in the area for nearly two years, even considering a similar-sized property at China Basin before settling on Mission Rock.

Coinbase’s return coincides with a period of increased political support for the crypto industry in Washington, including the dropping of more than a dozen SEC lawsuits against crypto firms. However, the company remains under SEC investigation for potentially misstating user numbers and recently suffered a cyberattack that could cost customers up to $400 million. The new lease leaves about 75,000 square feet available in Building B, with the Golden State Warriors as the first tenants. (Source: The San Francisco Standard)

• Coinbase signs largest office lease in company history in San Francisco.
• Company maintains remote-first policy despite new physical presence.
• Ongoing SEC investigation and recent cyberattack pose risks.

“President Trump has really breathed new life back into this industry,” said Coinbase CEO Brian Armstrong to CNBC after a White House summit.

Summary: Coinbase’s $25 million return to San Francisco signals renewed confidence in the city’s tech sector, but regulatory and security challenges remain significant.

OKX Predicts Explosive Blockchain Growth and Industry Convergence

OKX, a major cryptocurrency exchange, is shifting its focus from Hong Kong to building compliant services in the U.S. and Singapore, according to chief commercial officer Lennix Lai. The company’s new report, “The Future of Blockchain Applications: Reshaping Global Industries,” projects that blockchain adoption will see explosive growth in the coming years, with the current ecosystem valued at US$2.6 trillion. The report anticipates that the distinction between ‘crypto banks’ or ‘neo banks’ and traditional banks will largely disappear as the technology matures.

OKX has already expanded into traditional finance through partnerships, notably with Standard Chartered, allowing clients to use cryptocurrencies and tokenized money-market funds as collateral. The report highlights that the entire fintech sector, traditional finance, asset management, and even government entities are increasingly establishing a presence in crypto. However, OKX does not plan to directly compete with traditional banks.

• Blockchain ecosystem currently valued at US$2.6 trillion.
• OKX focuses on compliance in the U.S. and Singapore.
• Partnerships with traditional finance, such as Standard Chartered, are key to expansion.
• Industry convergence expected to blur lines between crypto and traditional banks.

Summary: OKX foresees rapid blockchain adoption and industry convergence, with a focus on compliant growth and partnerships rather than direct competition with banks. (Source: South China Morning Post)

Crypto’s Role in Child Exploitation Platform Exposed

Fortune reports on the rise and fall of one of the world’s largest child exploitation platforms, highlighting the role of cryptocurrency in both enabling and ultimately dismantling the operation. The article details how the use of crypto allowed the platform to operate with a degree of anonymity and global reach, complicating law enforcement efforts. However, blockchain’s transparency and traceability also contributed to the platform’s downfall, as authorities were able to track transactions and identify key actors.

• Cryptocurrency facilitated the growth and operation of illicit platforms.
• Blockchain analysis played a crucial role in law enforcement’s ability to dismantle the network.

Summary: While crypto enabled the expansion of illegal activities, its inherent transparency ultimately aided in law enforcement’s efforts to bring perpetrators to justice. (Source: Fortune)

Coinbase Client Sues IRS Over Crypto Transaction Privacy

A Coinbase client, Roger Metz, has filed a lawsuit against the U.S. government to block the IRS’s request for his cryptocurrency transaction records, arguing that the demands violate his right to privacy and exceed the scope of verifying his 2022 tax return. Metz claims that the IRS’s requests for digital asset price history and correspondence with Coinbase go beyond what is necessary and that he has a legitimate expectation of privacy regarding his usernames, addresses, and communications.

The case, Metz v. United States (N.D. Cal., No. 3:25-cv-04472), was filed on May 27, 2025. The IRS has declined to comment on pending litigation. The U.S. Supreme Court is also considering whether to review a separate IRS summons against Coinbase, seeking similar records from another taxpayer. Metz alleges that the IRS acted in bad faith by refusing to communicate with him, even after he fully paid the monies owed.

• Metz challenges IRS’s broad information requests as privacy violations.
• Case highlights ongoing legal battles over crypto transaction privacy and IRS authority.

“Simply because the IRS wants information on Metz does not mean that it has a right to such information,” the petition states.

Summary: The lawsuit underscores the tension between tax enforcement and privacy rights in the crypto sector, with broader implications as the Supreme Court considers related cases. (Source: news.bloombergtax.com)

Australia Sues Former ACX Director Over Exchange Collapse

The Australian Securities and Investments Commission (ASIC) has initiated civil penalty proceedings against Allan Guo, former director of Blockchain Global, for his role in the collapse of the ACX cryptocurrency exchange. ACX, which operated from 2016 to 2019, owes more than A$22.7 million (US$14.6 million) to former users after shutting down and locking users out of their funds. ASIC alleges that Guo misused customer money, misrepresented business activity, and failed to keep proper records, with the investigation beginning in January 2024 following a liquidator’s report.

ASIC imposed a travel ban on Guo in February 2025, but he had already left Australia in September 2024 after the restriction was lifted. Other former directors, including Samuel Xue Lee and Ryan Zijian Xu, are also under investigation. In March, the Australian government proposed a new crypto framework to regulate exchanges under existing financial services laws, requiring compliance with asset safeguarding, licensing, and capital requirements. However, smaller platforms and certain digital assets will be exempt from the new rules.

• ASIC pursues civil penalties for alleged misconduct and mismanagement.
• New regulatory framework aims to bring crypto exchanges under financial services laws.

Summary: The ACX case highlights regulatory efforts to protect users and enforce accountability in Australia’s crypto sector, with new rules set to reshape the industry. (Source: FinanceFeeds)

Self-Custody Surges as Traders Move Away from Centralized Exchanges

According to CCN.com, 2024 saw a 47% surge in active self-custody crypto wallets, reaching over 400 million addresses worldwide. Decentralized exchange (DEX) trading volumes hit all-time highs in January 2025, reflecting a global migration from centralized exchanges to self-custody solutions. This shift is driven by traders seeking greater autonomy, security, and real-time insights, especially after high-profile failures like the 2022 FTX collapse and a decade that saw 118 exchange hacks resulting in $11 billion in losses—11 times more than what was stolen directly from blockchains or individual wallets.

Modern self-custody wallets now offer advanced trading tools, on-chain analytics, and DEX integration, making them competitive with centralized platforms. Surveys indicate that 37% of crypto users cite security concerns as the top barrier to wider adoption. Wallet developers are focusing on user-friendly interfaces, guided onboarding, and enhanced security features to make self-custody accessible to a broader audience. The article suggests that as wallets evolve into all-in-one trading hubs, self-custody will become the default for informed crypto participants.

• Self-custody wallets now rival exchanges in functionality and security.
• Security concerns and past exchange failures drive migration to self-custody.
• Wallet innovation focuses on simplicity, analytics, and user empowerment.

“The gap between CeFi and DeFi is blurring. In effect, your wallet becomes the exchange, with you in the driver’s seat.” (CCN.com)

Summary: The rapid adoption of self-custody wallets and DEXs marks a fundamental shift in crypto trading, prioritizing user control, security, and transparency. (Source: CCN.com)

Sources:

• Coinbase once paid $25M to ditch SF. Now it’s back in a big way
• OKX sees tipping point for blockchain tech amid rising crypto sentiment
• How crypto contributed to the rise and fall of one of the world’s largest child exploitation platforms
• Coinbase Client Sues IRS to Shield Crypto Transaction Records
• Australia Sues Former ACX Director Over Crypto Exchange Collapse
• Traders Are Choosing Self-Custody Over Exchanges