Ahh, there's the real reason. So why do the VCs want fiat and not crypto returns?

Well, (a) just because they invested in Coinbase, which does crypto, doesn’t mean they have as much confidence in crypto as they have in Coinbase—betting on Coinbase is a bet on the volatility of crypto + Coinbase’s ability to win, not a bet on the price of crypto, (b) you have to pay taxes in dollars, (c) their investors probably want dollars.

Why is it a direct conclusion that the investors want dollars? it's currently the only system that is available to Coinbase within the US and they're utilizing that. What is stopping the investors from buying back in with the dollars they gained? (you can't know that for sure either)

They want dollars to make the paperwork and accounting easier. They're obviously not going to hold them for long.

If there was an alternative option allowed by the SEC in the US, I'm certain that they'd have chosen that. This is not a cut and dry conclusion (that the investors want dollars).

At a minimum, that's a signal for the future of cryptoCURRENCY. :)

How did you come to that conclusion?