Paul Grewal : Well, Coinbase is certainly familiar with registration with the SEC. And then, of course, as a publicly listed company, we were required to complete an S-1 back in April 2021. We’re also quite familiar with the Chair’s comments regarding registration of individual products and services. To the extent that registration is appropriate because, first and foremost, products and services qualified securities under the federal securities laws. Coinbase is quite open and eager to seek a path to registration where one is being available. I think it’s fair to say that at this point in time, the path to registration for products and services that may qualify as securities has not been open or at least readily or easily opened. So that’s proven to be challenging. But we’re always eager to pursue a registration where it makes sense, and we will continue to engage in conversations and dialogue where we have an opportunity to do so with the SEC or anybody else.
Kenneth Worthington : Great, thank you.
Operator: Your next question comes from Lisa Ellis of SVB MoffettNathanson.
Lisa Ellis : Hi, terrific. Thanks for taking my question. A follow-up there on the regulatory front, I know — and policy front, I guess, more broadly, you have highlighted now several times that you expect 2023 to be a significant year for crypto policy. There’s a lot of moving pieces here for us. So in your view, overall, what are the top like three or four things that would constitute a win on the policy or regulatory front over the next year?
Brian Armstrong : Yeah. Well, I want to temper expectations a little bit. I think any time new legislation gets passed, it’s kind of — a lot of stars have to align for that to happen, and for good reason, at least in the United States government. So we’re going to keep pushing on that. I don’t — we don’t know exactly what the chances are of that happening specifically this year, but I think over time, the chances are quite good. There’s a number of different areas that people are looking at. I mean one of them is simply on stablecoin front. And I think there’s generally a pretty broad consensus amongst Congress, the folks that I’ve spoken with, that we do want to bring that into the regulatory perimeter and to new legislation that just had some good best practices around making sure that funds were audited, things were back to one to one.
That would be a great win, and we could see some progress there. I think the other one is really around how to carve up the territory between CFTC and SEC, what’s the crypto commodity, what’s the crypto security, what is something else entirely like a stablecoin or artwork likes NFTs. And I think we could use sort of an updated definition of the Howie test, which was created before computers even existed, back in the 1930s, and really kind of clarify how does this apply to digital assets. I think that would be another core piece. And there’s a number of other rules there that I think just, again, apply the best practices from traditional financial services around let’s have a great anti-money laundering program and get rid of any kind of wash trading and reasonable kind of KYC procedures and things like that.
So those are a couple of the things that I think would help. And then if we get all that stuff working, then we could probably think about how DeFi d could fit in the regulatory perimeter or not. And so these are all different areas that could be looked at. But probably stablecoins and some of the early things would be the first ones to get looked at. Paul or anybody else want to add anything?
Paul Grewal : The only thing I would add, Brian, is that back in July of last year, as mentioned earlier, we did file a petition for rule-making with the SEC that outlined dozens and dozens, some things like more than 50 questions that we believe need to be answered in order to bring regulatory clarity to the digital asset space. We think an excellent start would be to initiate rule-making as we requested, so that not just Coinbase but everyone in the industry, and frankly, anyone with an interest in digital assets, can then have an opportunity to provide input to the commission and help the commission achieve the right balance between protecting consumers and investors, on the one hand, and promoting nnovateon on the other.
Operator: Your next question comes from the line of Pete Christiansen of Citi. Pete, your line is open.
Pete Christiansen : I’m sorry, can you hear me?
Brian Armstrong : Yeah, we can hear you.
Pete Christiansen : Okay. All right. Just remind us how much you think about how modest — is that primarily from Citi? Then I just have a quick follow-up.
Emilie Choi : I’m so sorry, Pete, you cut in and out. We heard a question on monetization, but we couldn’t identify which product.
Pete Christiansen : Sorry. If you could just take us through the integration with Aladdin and how we should think about monetization progressing there? Is that going to be primarily from Citi?
Emilie Choi : I’m sorry. Thank you for clarifying your question. So we don’t have a material update around the integrated Aladdin. As we announced, we are now in and on the back end, but the monetization is going to be that customers who have Aladdin can also serve in the Coinbase. So we’re hopeful that what this does is put crypto side by side with other stocks, bonds or tradable assets of hedge funds and asset managers. And it enables them to risk manage to have operational control commensurate in crypto that they could in other asset classes. And so those customers were also onboard onto Coinbase base and trade on our products and services and monetize on our platform. And then there’s going to be, obviously, some sort of commercial agreement between us and BlackRock. We haven’t provided public information on at this time.
