And some of those, especially in our centralized exchange products are happening off-chain, that’s where you kind of get high-frequency trading happening on our exchange that’s not – those aren’t all happening on-chain today. But if you look at all the transactions being generated, I think only about 7% or so is happening on Layer 2 today, and we need to increase that percentage. I think this is true, not just of Coinbase, by the way, but just the entire crypto industry. As we get Layer 2 needs to really become the default, I would say, for payments for interacting with Dapps, for NFTs, for decentralized social for identity – decentralized identity applications. So if we can get Layer 2 to be the default internally, and we’re sort of taking our own metrics around that.
Hopefully, the rest of the industry will also join us on that. And I think that’s going to be a big factor in kicking off another wave of adoption and utility around crypto.
Anil Gupta: We have one question left in the queue. So let’s take that, please.
Operator: Your final question comes from the line of Eric Dray with Bank of America. Your line is open.
Eric Dray: Hi guys, thanks for squeezing me in. Just wanted to follow-up on the legal front. Kind of two parts here. One, I appreciate kind of the date, the January 17th date there. Is there any other dates that investors should kind of be aware of? And then second, Brian, you talked a little bit about your conversations in Washington, how have people been prioritizing crypto regulation heading into such a key election year? Thank you.
Paul Grewal: This is Paul Grewal. Let me just speak to the first part of your question. The January 17, 2024 date is the most important day to focus on in our enforcement case with the SEC. That’s the date that the district judge will hear oral argue motion for judgment. We think it’s an important opportunity to present the court with even more reason to grant our motion that was that was laid out in our papers. We were gratified that the court set an oral argument date was something that we requested specifically, and we’re looking forward to that opportunity. But it’s also important to understand that we do not expect that the court will necessarily rule on the motion on that date when the core issues or opinion on our motion, of course, is fully within her discretion.
But whether we win or lose the motion, we’re fully prepared to litigate the case going forward, and we remain confident in the strength of our position in this case. We remain confident in the end, we will win this case. So more to come there, but the 17th is really the most important critical day to focus on in terms of next steps and next events in the enforcement case.
Brian Armstrong: Yes. And I think the other part of your question was about how folks are prioritizing crypto as an issue in D.C. So I can say for some of the folks that we’ve engaged with over there, it’s their probably their top legislative priority. But the D.C. has something crisis coming up every week or two here, government shutdown, new speaker, the issues in the Middle East. So we don’t pretend to be the top issue for everybody at all times. All we can do is kind of meet with folks, be an educational resource, make sure they know that the 52 million Americans really care about this. We actually – and then also, in some cases, help the parties come together to sort of negotiate language in some of these bills and things like that, that can build support for it.
One other thing that we did, I mentioned earlier was we did a Stand with Crypto Day actually, where we invited about 40 or 50 different crypto-entrepreneurs around the U.S., all flew into D.C. And what was pretty cool about it was that they got to meet with their representatives in many of these states and actually talk to them about what they’re building in their jurisdictions with crypto, why we’re excited about it and they were able to speak just very passionately about it. Where something I’m happy to speak with all these folks as well, but sometimes they can think, okay, well, this is a big tech company or a fintech company that’s not located. The people in my area actually care about this, the people that I’m serving and it was really cool to have those folks fly in and put a face to the name how they’re creating jobs with crypto, how they believe this is helping their hometowns and building the future of the financial system because it’s certainly a need of an update.
So we’re certainly working to make it a priority. And I think whenever these issues come up, like we see consumer harm or some issue. It just really highlights the need for regulation and for make sure that U.S. doesn’t fall behind here. The vast majority of activity in crypto today is legitimate positive, it is people who are passionate about updating the financial system and using the technology kind of like the early users of the Internet. And sometimes it feels generational. There’s an older generation. They haven’t used it, but they don’t use e-commerce either, right? So they’re – sometimes they have a little trouble wrapping their head around it, but they often will talk to their staffers, to their children. Some of the younger folks in Congress just immediately get it.
And so it’s one of these things that’s inevitable. It’s just a matter of educating folks about it and making sure we get the right outcome.
Anil Gupta: All right. Well, that does it. Thank you all for joining us, and we look forward to speaking to you again on our next call.
Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect your lines.
