US cryptocurrency exchange Coinbase has responded to the latest regulatory action from the Securities and Exchange Commission (SEC).
On April 27, Coinbase released a video in response to Wells’ notification from the SEC. The company was hit with a Wells notice on March 23 as the regulator ramped up its war on cryptocurrency.
Wells’ Notice is a letter from the Securities and Exchange Commission confirming its intent to file an enforcement action against the company. At the time, Coinbase’s chief legal officer, Paul Grewal, said they were “disappointed that the SEC is considering a constructive dialogue.”
Responding to the regulator, Grewal said that the SEC claims the rules are clear, but that many crypto company executives disagree.
“The CFTC and the SEC have issued conflicting views. The courts have questioned the lack of direction from the SEC; and the SEC itself, just last week, could not answer fundamental questions before Congress.”
Coinbase is ready to fight
Moreover, it is added That the SEC has not yet complied with the law by providing crypto companies with a way to register.
“We do not enjoy litigation against the SEC, but we will vigorously defend ourselves — and stand up for the rule of law for all.”
Coinbase CEO Brian Armstrong joined his colleague, noting that the company is committed to operating in the regulatory environment. However, he said a clear market structure is needed, adding:
“Wells’ remark at this point when there is no clear rulebook is not constructive and not good for America. We are willing to defend that position in court, but it doesn’t have to come to that.”
Armstrong I finish By calling for dialogue rather than enforcement.
Finally, Grewal ended the presentation by saying that Coinbase has repeatedly asked the Securities and Exchange Commission (SEC) for guidance on its services. “Honestly… our response to that was mostly silence,” he said.
On April 24, Coinbase took action against the SEC in the form of a federal court filing. The company just wants the SEC to respond to its pending rulemaking petition. Moreover, Coinbase filed the petition in July 2022, asking the regulator to provide overdue guidance to the digital currency industry.
It has been met with silence as Gary Gensler and his team of enforcers continue to crack down on the crypto sector.
On April 19, the company announced that it had obtained regulatory authorization to operate from the Bermuda Monetary Authority. Armstrong also hinted that moving offshore is on the table should America’s war on cryptocurrency escalate.
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