• Coinbase has released a public statement expressing dissatisfaction over the Securities and Exchange Commission’s (SEC) „unfair and unreasonable“ approach regarding its operations.
• The SEC had issued a Wells notice to Coinbase, which is essentially a warning that the company may have violated certain securities laws.
• Coinbase has stated that it had proposed multiple registration options to the SEC without getting any response, and that the regulator refused to clarify which assets it believed were securities.
Coinbase Responds To SEC’s ‚Unfair‘ Wells Notice
The crypto platform Coinbase has released a public statement calling out the U.S. Securities and Exchange Commission (SEC) for being „unreasonable“ after being served with a Wells notice by the regulator.
What Is A Wells Notice?
A Wells notice is issued by the SEC staff to warn companies that they may have violated certain securities laws, although it does not represent a formal charge or lawsuit. It is basically an indication from the regulator that it is keeping a close watch on particular companies and could take legal action if necessary.
Coinbase Criticizes The SEC
In its public statement, Coinbase expressed deep disappointment at having been served with a Wells notice, claiming it was related to some of its listed digital assets, staking service Coinbase Earn, Prime, and Wallet services. It also accused the SEC of taking action after minimal investigation and asked for clarity in court if necessary.
Coinbase Services Unaffected
The team clarified that this would not affect their current products and services which will continue operating as usual. They also pointed out how they had asked for clarification regarding what assets were considered securities but received no response from the regulator in return.
Judges Criticize The Regulator
The statement included quote from Federal Bankruptcy Judge Michael Wiles who called out regulators over ongoing Voyager case involving cryptocurrencies saying “Regulators themselves cannot seem to agree as to whether cryptocurrencies are commodities that may be subject to regulation”