Coinbase received a Wells notice from the Security and Exchange Commission of the United State which is going to be followed by an intense investigation from the regulatory authority. When this might seem like another regular check into business operations, these notices from SEC are getting more common for the crypto businesses.
Sharing the news with its users Brian Armstrong, the founder of Coinbase exchange said that SEC had previously checked their businesses and approved them to go public and now it wants to redo everything for no substantial reason given. Brian also said in its series of tweets that the exchange will be going to the courts to show the masses how SEC had explicitly unfair and unresponsive towards the industry concerns. While it repeatedly showed a lack of seriousness of purpose when it comes to engagement on digital assets.
Paul Grewal, the Chief Legal Officer of Coinbase exchange, also shared a blog on his Twitter highlighting how SEC first asked the exchange to propose a mechanism and then stopped responding. Grewal’s blog was titled, “We asked the SEC for reasonable crypto rules for Americans. We got legal threats instead.”
In the blog, Grewal said that Coinbase had to spend millions of dollars on legal support to draft those two proposals after which it got no response from the authorities. Grewal also said that they have repeatedly asked the SEC to raise questions about their listing process or any asset listed on their platform. The blog ended with a positive note where the exchange assured its users that all operations of the platform will continue to work like normal and these proceedings will not affect the users in any way.
The point lies in the fact that the SEC is pushing the crypto businesses to court without considering the impact of these unforeseen scrutinies. Even after all this, SEC could not control the fall of crypto businesses and well-established banks in the past. These sudden actions against the industry giants look nothing more than a cover-up for SEC’s efficiency in managing its last blunders.
The industry would be looking forward to seeing how things will proceed in this case and how Coinbase will tackle things legally.
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