Owen Lau: Thank you for taking my question. So I think there are some positive developments going on in the regulation side. More crypto bills may come out soon, SEC will respond to Coinbase petition. But could you please talk about how much of the current regulatory regime has actually impacted your ability to launch new products, both locally and internationally? And how much it has impacted your confidence to generate positive adjusted EBITDA in all conditions? Thank you.
Alesia Haas: Why don’t I take the first stab and please, Paul, Brian Emily, please add in. So our product road map has not been impacted by the Wells notice. We are pleased to have, as Brian shared with you, a very active quarter of product innovation from protocols to acquiring an asset management to launching just this week, the International Exchange, including our first derivative product in the market. So we are feeling very excited about building through this winter and about the breadth of offerings that we can continue to have. And at this time, as we shared previously, we’ve run scenarios, but we are business as usual, and we feel really good about being able to deliver on the financial goals that we set forth at the beginning of the year, which is to improve adjusted EBITDA on a year-over-year basis. And we don’t see anything at this time to share that would derail us from that objective.
Operator: Your next question comes from the line of Rich Repetto with Piper Sandler.
Rich Repetto: Yeah. Good evening, Brian and team, thank you for taking my question. And sorry to stay on the regulatory question, but it is important. And you say, Brian, in the shareholder letter, on Page 14, you say that we could — we believe we could see real action on the legislative side before the end of 2Q. So we’re getting towards the end of 2Q. And just trying whether you could give any more detail on that statement that the bipartisan legislation and any more details? And have you been able to engage with the SEC since the Wells notice? And then lastly, with Ripple (ph) and the XRP case, do you think that, that will have any precedent or how will that clear? Would that provide any clarity on the regulatory plan? Thank you.
Brian Armstrong: Paul, turn it over to you. I mean, on the timing of legislation, obviously, we can’t predict anything like that exactly, but I don’t want to reveal something sensitive that may be being worked on over there. But there are various parties that have a real motivation to help get that clear rule book in the U.S. through new legislation. And we’re certainly supportive of seeing that happen. Yeah, Paul, go ahead and jump in.
Paul Grewal: Just want to underscore that, as you pointed out earlier, Brian, we’re seeing draft legislation not only here in the United States coming together largely on a bipartisan basis and hopefully, moving forward in the coming quarter, but also outside the United States. We’re seeing the U.K. and other jurisdictions move on and move ahead with their own legislative proposals and initiatives. So while no time line is certain, it certainly appears that we’re seeing progress in legislation, not just in the United States, but in jurisdictions all over the world. And I should also speak to the question about engagement with the SEC as well since the Wells, we always remain open to dialogue with the SEC in conversation with them wherever it makes sense and is appropriate.
And at the same time, we are fully committed, if necessary, to defending any case that we may face in court if for another reason then crypto and not just Coinbase or crypto as a whole needs clarity in order to move forward as an industry, and we’re confident that we will be able to provide that clarity through any action that may take place in litigation.
Operator: The next question comes from the line of Lisa Ellis with MoffettNathanson.
Lisa Ellis: Terrific. Thanks for taking my question. I like this Exhibit you outlined on Page 11 in the shareholder letter showing the three pillars of your product strategy and how they align to your long-term vision. Can you elaborate a little bit on how we should think about Coinbase’s both revenues and investments sort of now and in the future outlined across the spectrum? Thank you.
Alesia Haas: Thanks for the question, Lisa. So we are in what we consider the first phase, which is crypto as an asset class. And that’s where the majority of our revenue is earned today, as you can see by the products that we highlighted and eventually you’re alluding to. So this includes coinbase.com, which is our consumer trading platform, the prime business, custody and the spot market, which is what facilitates the trading and liquidity for those front-end customer experiences. We are actively looking to diversify our revenue streams, and we have many products, as you can see listed here that are in our earlier stage. We’ve shared with you previously that we consider things in our core, strategic and interest portfolio and are constantly looking at new venture products.
We don’t give long-term outlooks, but over time, we believe that these other revenue streams will become a larger part of our revenue stream. Just like in Q2, we saw subscription and services revenue, get to about 39% of total revenue for the quarter. We have many new revenue streams and other subscription and services revenue that are beginning to generate what we call little green shoots, small dollars. We’re not able to give an outlook at this time. But the goal is to get a diversified portfolio that have different drivers that some will perform stronger in some market conditions and some will perform better in other market conditions. And that diversification will lead to an overall platform where we can engage our customers with many different products and services.
But I don’t have a specific number to give you today.
Operator: Your next question comes from the line of Kenneth Worthington with JPMorgan.
