Coinbase received a so-called Wells notice from the US Securities and Exchange Commission (SEC) this week, meaning that the financial watchdog is considering filing a lawsuit against the exchange platform. The lawsuit would revolve around some tokens that Coinbase was not allowed to trade on its platform, according to the SEC, and the notorious subject of strikes. According to Coinbase, the United States is making a mistake and creating a gap that other countries are only too happy to fill.
‘Europe wins, the US catching up?’
In a new blog post titled “Europe Winning, the US Still Catching Up?” writes Coinbase VP Daniel Seifert that the industry is currently running away from the United States. That running away has to do with the way the American authorities act, who prefer a firm hand over consultation and clarity.
Certainly in recent months, the SEC has increasingly come out hard with fines and bans, something that Seifert says is not the way to approach this industry. “This approach creates a climate of uncertainty and instability in the crypto industry,” Seifert writes.
Coinbase’s top lawyer @iampaulgrewal says the SEC wants court fights instead of conversation. 🥊
In dozens of meetings with the SEC over the last 9 months, Grewal says the exchange was “given essentially no response” to key questions.
— Laura Shin (@laurashin) March 24, 2023
According to Paul Grewal, Coinbase’s lead attorney, the SEC is also currently preferring the courtroom over a conversation with the exchange platform. So it is clearly looking for a fight, rather than a solution that may satisfy both parties. As a result, according to Seifert, the US will lose its status as a leader in crypto.
Crypto community doesn’t understand it
The crypto community, meanwhile, is reacting with amazement at the way the SEC is currently choosing to handle the industry. “The SEC is missing one of the biggest fraud cases in history (FTX/Alameda). Gary Gensler then befriends the head of that fraud case (SBF). Next, the SEC goes after the industry’s most legitimate company: Coinbase. Yes, very normal and totally rational,” said a frustrated sassal.eth via Twitter.
The SEC misses one of the biggest frauds in history – FTX/Alameda
Gary Gensler cozies up to the head of that fraud – SBF
And then the SEC goes after the most legitimate company in crypto – Coinbase
Yes yes very normal and totally rational
— sassal.eth 🦇🔊 (@sassal0x) March 23, 2023
For now, Europe seems to be attracting part of the industry. Coinbase’s Seifert refers, among other things, to the Paris Blockchain Week that took place at the Louvre, which he says is France’s “greatest national treasure,” he writes in his blog post.