In the words of Brian Armstrong, “We are right on the law, confident in the facts, and welcome the opportunity for Coinbase (and by extension the broader crypto community) to get before a court. We are proud to stand up for our customers and the industry in these moments.”
Earlier today, the SEC sent a Wells notice to Coinbase claiming that it will pursue enforcement action against the firm for alleged violations of the securities law.
A blog post by Coinbase's Chief Legal Officer Paul Grewal claimed that the SEC’s Wells notice targeted certain assets listed on Coinbase in addition to some of the services provided by the platform. These include Coinbase Wallet, Coinbase Prime, and staking service Coinbase Earn.
Recounting the events of 2022, the blog post noted that Coinbase contacted the SEC more than thirty times over the last nine months to register with the regulator and resolve an earlier investigation. However, the SEC never responded to Coinbase’s queries and abruptly announced that it will seek regulatory action against the exchange.
“We spent millions of dollars on legal support to build these proposals and repeatedly asked for the SEC’s feedback. We got none. To move to a Wells notice now, is unusual to say the least.”
He referred to an earlier development where Judge Michael Wiles slammed the SEC’s objections to the Binance.US-Voyager deal. Grewal added that Coinbase is not the only firm raising concerns about the SEC’s lack of regulatory clarity.
Similarly, Brian Armstrong, the CEO of Coinbase, called the SEC’s recent actions unreasonable shortly after the regulatory body issued a Wells notice against the exchange. Armstrong tweeted that potential legal proceedings will make it clear that the SEC has "not been fair, reasonable, or even demonstrated a seriousness of purpose" in its regulation of crypto platforms.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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