SEC Hands Coinbase A ‘Wells Notice;’ Coinbase Rebukes
23 Mars 2023 - 6:47AM
NEWSBTC
Flagship cryptocurrency exchange Coinbase has stood the test of
time through bear and bull markets alike. Like it or not, Coinbase
lives on a short list of exchanges that have been around for over a
decade. This week, the exchange revealed that they have been issued
a ‘Wells notice’ from the SEC, a signal of growing action from the
U.S. enforcement bureau that continues to show hesitancy in
adapting crypto-friendly policies. Historically, Wells notices
typically serve as a concluding pillar in an SEC investigation, and
often signal incoming enforcement. SEC Notice: Coinbase Expresses
Frustration The notice was made public by Coinbase through a blog
post published on Wednesday, amplified through a tweet thread from
the exchange’s Chief Legal Officer, Paul Grewal. The blog post
notes that the SEC is focused on a few of the exchange’s primary
product offerings, including staking service Earn, institutional
arm Prime, and the exchange’s consumer-facing Wallet product. The
firm goes on to explain that they are “prepared for this
disappointing development,” despite seemingly uncertain roads
ahead. Nonetheless, Coinbase emphasizes that product offerings are
unchanged, and doubles down on a sentiment that has been often
echoed by many exchanges: “we welcome a legal process to provide
the clarity we have been advocating for and to demonstrate that the
SEC simply has not been fair or reasonable when it comes to its
engagement on digital assets.” Coinbase (NASDAQ:COIN) states that
they have met with the SEC nearly three dozen times over the past
year. | Source: NASDAQ:COIN on TradingView.com Related Reading:
Quant Points Out Curious Relationship Between USDT Inflows &
Bitcoin Price The SEC’s Growing List Of Targets This news shouldn’t
surprise many. In recent days, we’ve seen the SEC also unleash
securities law violations against Tron’s Justin Sun and celebrities
like Lindsey Lohan. It’s been a long back and forth between
Coinbase and the SEC, with the exchange just sending a letter to
the commission in recent days. Earlier this year, the SEC sent a
similar Wells notice to Paxos, issuers of stablecoin BUSD, and many
believe that stablecoins are a point of emphasis for the
commission. This move led Jesse Powell, co-founder and CEO of
fellow long-time crypto exchange Kraken, to express that regulators
in the U.S. are the main hindrance to crypto’s growth. It’s
uncertain where we head from here; while historically, a sample set
from just under 1,000 cases between 2011 and 2013 reflects that
approximately 80% of issued Wells notices have resulted in tangible
charges. However, a lot has changed in the past decade, and new SEC
leadership under head Gary Gensler haven’t supplied much
inspiration to crypto advocates that effective policy is en route.
In the meantime, Coinbase maintains that they do not offer
securities to customers. Related Reading: Bitcoin Rally Driven By
Record Open Interest In Derivatives Market
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