Odaily Planet Daily News Given the regulatory environment in the United States, U.S. crypto companies are looking to Bermuda and its friendlier digital asset framework. Phil Berg, head of the corporate department at Otterbourg Law Firm, said, "It's definitely a hot spot for companies that choose to relocate. They can test the waters like Coinbase." In recent months, the U.S. SEC has taken enforcement actions, investigations or reached settlements against crypto companies including Coinbase, Kraken, Bittrex, and Genesis. Andrew Gordon, executive attorney at Gordon Law Group, said, "Enforcement is increasing. However, regulatory clarity has not increased, or has not increased." Since the enactment of the Digital Asset Business Act, Bermuda has been building and fine-tuning its digital asset framework over the past five years. The Act establishes a licensing system for operating businesses such as issuing, selling or redeeming digital assets, serving as a payment service provider using digital assets, and electronic exchanges. Bermuda has issued licenses to crypto companies, including Block and its subsidiary Cash App, as well as Circle, the Boston-based issuer of the USDC stablecoin. In an interview at the Consensus 2023 conference in Austin, Texas, Bermuda Premier E. David Burt said, "Coinbase recognizes, as many other companies recognize, that we have a superior regulatory environment. As I said, this is a regulatory 'race to the top', and Bermuda has proven that we are a place where we can do it." (The Block) As previously reported, Coinbase has been awarded a Class F license by the Bermuda Monetary Authority and may launch an offshore derivatives exchange.