Coinbase pushes Coinbase to respond to Wells Notice

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Coinbase pushes Coinbase to respond to Wells Notice

The SEC is pushing America's biggest crypto exchange to make changes to its entire customer-facing operations.

Coinbase Global Inc. pushed back against the regulator Thursday, publicizing its response to a Wells Notice issued late last month. The Wells Notice signaled that the SEC could take legal action against Coinbase for infringing on securities laws.

The SEC contends that tokens and other products from Coinbase are securities that should be registered. Coinbase differs, contending that none of its current products are securities.

The SEC hasn't uncovered new information about the company, and said any concerns should have been brought up when the company filed its public offering process, according to Coinbase.

The SEC could sue Coinbase for the Wells Notice, and the company said while it's prepared to defend itself, a lawsuit may not be in the regulator's best interest.

The SEC has faced criticism for its regulatory by enforcement strategy as it has moreened its scrutiny of firms in the sector. Certain companies, such as Bittrex, have chosen to shut down their U.S. operations due to regulatory uncertainty. Coinbase's Armstrong said the company could consider moving operations abroad if there is no clarification on crypto rules.

A Wells Notice is one of several actions the SEC is taking in its efforts to regulate the cryptocurrency industry. Crypto companies, on the other hand, maintain that they don't work in securities.

SEC Chair Gary Gensler, speaking on condition of anonymity, said the dog shouldn't need to be leashed because it's actually a goldfish.

Gensler said he was not worried about how the future will play out, and that he would be able to put an end to it.