Confrontation between CoinBase and SEC moves to new level
2023.03.23 09:16
Confrontation between CoinBase and SEC moves to new level
By Kristina Sobol
Budrigannews.com – Coinbase CEO and co-founder Brian Armstrong has criticized the Securities and Exchange Commission (SEC) for not being able to “agree on the rules” of “this new game,” comparing them to “soccer refs” in a pickleball match.
Armstrong made the remarks after he said that his company had received a Wells notice on March 22 and that: usually comes before an enforcement action.
1/ The SEC sent Coinbase a Wells notice today that focused on asset listings and stakes. A Wells notice regularly goes before a requirement activity.
The CEO of Coinbase has criticized U.S. regulators for what appears to be a lack of clarity regarding crypto regulation. The question of who ought to be in charge of crypto regulation has also been the subject of ongoing debate.
Armstrong jokingly responded when asked to explain the most recent development “in NFL terms”:
“Imagine that there are officials for both football and soccer on the field; however, we are actually playing pickleball, which is the new sport with the fastest growth in the United States. One of the referees decides to change a decision they made in April 2021 because the refs can’t really agree on the rules of this new game.
The approval of Coinbase’s application to go public by the SEC is referred to as a “call they made back in April 2021.” Armstrong argued that its filings “included 57 references to staking” and “clearly explained” its asset listing procedure.
Paul Grewal, chief legal officer of Coinbase, stated in a separate tweet that the SEC provided “no clear rule book” regarding crypto regulations and that “efforts to engage with the SEC are met with silence or enforcement actions.”
The truth is that the SEC does not yet have a clear crypto rulebook, and attempts to communicate with the SEC are met with silence or enforcement actions. According to the APA, they have not followed a good-faith rulemaking process with industry. 10/15 Both executives appear to welcome the opportunity to use the “legal process” to provide regulatory clarity to the crypto industry.
Armstrong stated, “We are proud to stand up for our customers and the industry in these moments.”
“We will be able to make clear for all to see that the SEC simply has not been fair, reasonable, or even demonstrated a seriousness of purpose when it comes to its engagement on digital assets,” says the statement. “Going forward, the legal process will provide an open and public forum before an unbiased body.”
Armstrong has repeatedly stated that Coinbase’s staking services are not securities and that the company would be happy to defend this position in court if required, in contrast to other businesses like Kraken, which reached a settlement with the SEC that required it to stop providing staking services to customers in the United States.
The most recent notice has received widespread condemnation from the crypto community, with many agreeing that the SEC has reversed its previous position regarding Coinbase.
Coinbase has also received support from a lot of people, who appear to agree that Coinbase would be fighting on behalf of the entire U.S. crypto industry as offshore activity is driven by an unclear regulatory environment.
