In a strategic move, US crypto exchange Coinbase has announced that it is returning to the Hawaiian market after a seven-year hiatus. The decision marks a significant milestone for the company, as Hawaii was the only US state where Coinbase had previously ceased operations.

Coinbase’s Homecoming

According to Bloomberg reportThe return to Hawaii comes amid notable changes to local regulations that have rekindled Coinbase’s interest in the Aloha State, home to about 1.4 million people.

According to the San Francisco-headquartered exchange, Hawaii residents can now trade cryptocurrencies and participate in staking activities to earn interest on their digital assets.

Coinbase’s departure from Hawaii in 2017 was largely attributed to the state’s requirement that digital asset companies obtain a money transmitter license and maintain fiat reserves equal to the total value of digital currency funds for customers.

However, that barrier was lifted in late June when the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions announced that digital currency companies would no longer need a Hawaii-issued money transmitter license to operate within the state.

Coinbase Chief Policy Officer Faryar Shirzad expressed excitement about the resumption of services in Hawaii, acknowledging the strong interest among Hawaiians in accessing the exchange’s offerings.

This move is in line with a broader trend in the changing US regulatory landscape, as evidenced by the SEC’s recent approval of exchange traded funds (ETFs) for Bitcoin and Ethereum holdings. However, the crypto firm’s legal battle with the regulator is still ongoing, despite the relaxation of regulations in certain areas.

Legal battles escalate in the US

Coinbase is still embroiled in a legal dispute with the SEC over allegations of operating as an unregistered securities exchange. The crypto exchange has retaliated by submit filed a countersuit against the agency, disputing the claims and calling for disclosure of internal documents to bolster the agency’s defense.

As the legal battle As the situation becomes more serious, Coinbase recently filed a petition with the SEC to release the internal documents, urging the regulator to fulfill its disclosure obligations.

As Bitcoinist reported, the exchange’s efforts were met with resistance from the SEC, which deemed the requests “overly broad and burdensome.” Coinbase’s response criticized the SEC for not conducting a comprehensive review of relevant documents and stressed the importance of a fair discovery process.

In addition, the exchange recently gave its opinion on the current market situation with a new report highlights the impact of macroeconomic factors on the crypto industry and underscores investor concerns about global economic shifts.

With leverage in on-chain spot markets decreasing and limited opportunities for price increases, the exchange concluded that the market remains sensitive to external pressures and geopolitical tensions.

Main image from Shutterstock, chart from TradingView.com