Cryptocurrency exchange Coinbase said it received a notification from Wells from the U.S. Securities and Exchange Commission recommending enforcement action by the regulator.
In a March 22 blog post, Coinbase said “legal threats” could be made against the exchange’s staking program, Coinbase Earn; listing Crypto assets; its wallet; or its Coinbase Prime service. Wells’ notification letter typically warns a company of potential SEC enforcement action, but Coinbase didn’t provide any details beyond a “possible violation of securities laws.”
“We specifically asked the SEC to identify which assets on our platform they thought might be securities, and they refused to do so,” said Paul Grewal, Coinbase’s chief legal officer. The release followed multiple proposals for registration from the SEC, all of which were ultimately rejected by the SEC.”
1/ Today, Coinbase received a Wells Notice from the SEC focusing on staking and asset listings. Wells notification usually precedes enforcement action.
— Brian Armstrong (@brian_armstrong) March 22, 2023
The cryptocurrency exchange said its products and services will “continue to operate as usual” while the investigation is underway. Grewal countered the oft-cited approach of SEC Chairman Gary Gensler — “come in and talk to us” — claiming that Coinbase “had met with SEC representatives more than 30 times in nine months” but had received little response to its proposal. feedback.
“During this investigation, the SEC never told us about a single specific issue about a single asset on our platform. Now turning to the Wells notice is unusual, to say the least.”
Coinbase Is ‘Fundamentally Different’ From Kraken – Lead Lawyer
Coinbase filed a petition with the SEC on March 20 in an attempt to explain to regulators that staking is not necessarily universally considered a security. The exchange claims that none of its listed assets are considered securities within the regulator’s purview, and that any potential targeting of its wallets is based on the SEC’s “misunderstanding of cryptocurrency products, assets, and services.”
The SEC previously announced a settlement with Kraken, with the cryptocurrency exchange agreeing to halt its staking program for U.S. users. News of the Wells notification comes after the SEC announced that it has filed charges against Justin Sun and several celebrities for the issuance, sale and touting of Tron (TRX) and BitTorrent (BTT).
Power Up… SEC Takes Reactionary Action On Cryptocurrency Lending
Information source: compiled by 0x information from COINTELEGRAPH.Copyright belongs to the author Turner Wright, without permission, may not be reproduced