Yesterday was in it crypto news to read that the American Securities and Exchange Commission (SEC) issued an official warning to crypto exchange Coinbase. According to the regulator, Coinbase cryptocurrencys as unregistered securities, or securities. The company even received a so-called Wells Notice. The CEO of Coinbase. Brian Armstrong believes it all and indicates today that he is not afraid to fight this case in court.
Coinbase in trouble?
A Wells Notice from the SEC is generally not seen as a positive thing. It means that the regulator has a strong suspicion that a company or entity is not complying with the rules and that action may be taken soon or that they will be taken to court.
Nevertheless, Armstrong indicates that he and his company are convinced of their innocence. Armstrong is very adamant about that Coinbase does nothing wrong and was therefore very surprised by the SEC’s attack on his company.
During the day a Twitter space on Thursday, Armstrong even stated that he would not shy away from battling the issue in court. Coinbase remains a firm believer in the “legality of assets and services” the exchange offers to customers in the United States.
Much needed crypto regulation
In fact, according to Armstrong, an eventual lawsuit between Coinbase and the SEC could finally provide much-needed clarity on crypto regulation:
“I think maybe the courts can give us some clarity. In a way, we are happy to go to court if necessary to finally develop case law for this industry so that the industry can be built here in America in a safe, trusted and regulated way.”
Armstrong is also disappointed that the SEC in particular is working unreasonably in his opinion. Other regulators in the United States, such as the CFTC, are willing to enter into discussions with crypto companies, but the SEC continues to take a stand. Something that according to Armstrong is very unfortunate.