Coinbase Hangs Over Fire as SEC Sharpens Attack Blades

1. The SEC presents a Wells notice to Coinbase. 
2. Coinbase expects enforcement action from the SEC.
3. The community is furious to see what they believe to be an unjust move from the SEC.

Brian Armstrong shares a thread on an upsetting development between Coinbase and the SEC. It seems today, Coinbase was given a Wells notice from the SEC. This is concerning as a Wells notice often precedes an enforcement action. Specifically, the Wells notice focuses particularly on staking and asset listings.

1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.

— Brian Armstrong (@brian_armstrong) March 22, 2023

Armstrong’s thread goes on to show just how unjust this move is by the SEC. To highlight, Coinbase has always worked to be transparent with their users and with regulators. Unfortunately, the SEC has not been very cooperative. 

In the past, instead of addressing Coinbase’s effort to communicate and come up with a favorable compromise, the SEC has completely ignored their extended hand that came in the form of legal communication channels.

Just two years ago, the SEC reviewed Coinbase’s business in detail and gave them the green light to go public. In this stage, Coinbase clearly explained their asset listing process which included 57 references to staking. 

So far, Coinbase has rejected over 90% of the assets that applied to be listed on their platform. This is how strict their asset review process has been. Armstrong goes on to say that it is understandable that reforms in the financial system take place, but it doesn’t change the fact that Coinbase has never gone against the law. 

He says that from here on, Coinbase will make its legal process more open to the public forum. As always, Armstrong promises to continue to do its best for its users and the crypto community. In addition, he says he is excited to work with regulators to find fair solutions.

From the very beginning @brian_armstrong made the decision that @Coinbase should play by the rules, engage with regulators and lawmakers, and behave like a responsible actor in what used to be a nascent industry. We should be proud of this exact kind of US-born responsible… https://t.co/kiOijgEUfw

— David Marcus (@davidmarcus) March 23, 2023

In response to what seems to be an unjust move, the CEO of Lightspark shares his take on the matter. He draws light to how Armstrong has always done his best to work with regulators. He goes on to say how unfair it is to see good names in the industry get flamed while others (FTX) get to walk free.

Read also:

• Coinbase Coverage Initiated by Analysts at Wells Fargo
• Tokenizing Ownership in Oil with a Game-changing New Miner
• Coinbase CEO’s Response to Employee Rant Backfires
• Report: Paxos’s Own Stablecoin USDP is not Within SEC’s Notice
• Brian Armstrong Mulls Over Coinbase Bank With Non-Fractional Reserve

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