Coinbase CEO Criticizes EU's Regulatory Approach as "Borderline Looting" of U.S. Tech Companies

Source: ETHNews Original Title: Coinbase CEO Slams EU for “Borderline Looting” of U.S. Tech Firms Original Link: https://www.ethnews.com/coinbase-ceo-slams-eu-for-borderline-looting-of-u-s-tech-firms/

CEO’s Criticism of EU Regulatory Strategy

The CEO of a major compliance platform has sharply criticized the European Union’s regulatory approach, claiming the bloc is extracting excessive revenue from American technology companies through what he describes as punitive fines.

In recent remarks, the executive argued the practice “borders on looting,” pointing to data from 2024 that, in his view, shows a troubling imbalance. According to him, the EU imposed €3.8 billion in fines on U.S. tech firms last year, more than the combined €3.2 billion that all publicly listed European internet companies paid in corporate income tax.

The executive suggested that when fines surpass normal taxation, it reflects a government strategy prioritizing penalty revenue over sustainable economic expansion. He warned that aggressive regulatory enforcement and strong economic growth “cannot coexist,” especially when companies feel targeted rather than supported.

Digital Services Act Enforcement Intensifies

The dispute comes as the EU intensifies its enforcement under the Digital Services Act, a sweeping framework intended to govern online platforms. The legislation has already resulted in a series of high-profile penalties, including a recent €120 million fine against a major social media platform for violations related to content moderation rules. Critics argue that this increasingly strict landscape risks harming innovation by treating major U.S. companies as convenient revenue sources rather than partners in the digital economy.

At the same time, the EU has moved ahead with its Markets in Crypto-Assets (MiCA) regulation, the first comprehensive crypto rulebook among major economies. The major compliance platform has been working to align with the new standards, designating Ireland as its European regulatory hub to meet MiCA requirements.

Regulatory Penalties and Compliance Challenges

Despite these criticisms, the compliance platform has not been exempt from regulatory action within the EU. The platform’s European operations were recently fined €21.5 million by the Central Bank of Ireland for “significant” anti-money laundering monitoring failures that occurred between 2021 and 2025. Regulators stated that the company had not maintained adequate systems for transaction oversight during that period.

The tension underscores a broader conflict between Silicon Valley’s leading firms and European policymakers, who maintain that strict oversight is necessary to protect consumers and financial stability. Industry observers counter that while regulation is essential, the current model disproportionately targets U.S. companies and risks undermining innovation across digital finance, artificial intelligence, and internet platforms.

Ongoing Transatlantic Regulatory Debate

As discussions continue around digital policy and MiCA implementation, these remarks add renewed pressure to the transatlantic debate over how far regulators should go. Whether the EU’s approach represents necessary oversight or an economic burden remains deeply contested, but the growing divide shows how central digital regulation has become to global competition and policy strategy.