The United States is tightening the yoke on the cryptocurrency industry. US Securities and Exchange Commission (SEC) consider taking countermeasures coin base for possible violation of market law. The U.S. regulator has sent a Wells notice regarding an “indeterminate portion” of its listed digital assets and staking service Coinbase Earn to Coinbase Prime, one of the most relevant platforms in the industry, the “swap” platform. Coinbase Wallet. Paul Grewal, the company’s director of compliance, assured on his Twitter account that they are confident in the legality of their activities. “We welcome a legal process to provide the clarity we advocate and demonstrate that the SEC is not fair or unreasonable when it comes to its commitment to digital assets.”
The Wells Notice is a type of document issued by the US regulatory agency to inform companies and individuals about possible legal action against them. After receiving the notification, the accused party has 30 days to respond with the defense. As Grewal explains, while the SEC did not provide “more information,” it did identify certain securities legislation violations: “We specifically asked the SEC to identify which assets they believed might be securities on our platforms, and they refused to do so.” To add. The notification came after Coinbase submitted multiple proposals on the registry to the regulator over the months, according to its “exchange” platform, all of which went unanswered.
Coinbase has received a Wells notice from the SEC. After years of demanding reasonable crypto rules, we are disappointed that the SEC is considering courts rather than constructive dialogue. But if the courts are needed, so be it. We will defend the rule of law. 1/15 https://t.co/MXpc0RhNj4
— paulgrewal.eth (@iampaulgrewal) March 22, 2023
This is the second time the SEC is focusing on this company. Coinbase acknowledged last summer that it received subpoenas and information requests from the SEC to obtain “documents and information regarding certain current and anticipated future customer, transaction, and product programs.” The company has spent millions of dollars on legal support to develop these offerings and has come together. “more than 30 in nine months” with SEC officials.
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US regulators have been working for months to advance regulation of cryptocurrency services, an act described as “persecution” from the industry. Coinbase CEO and co-founder Brian Armstrong criticized the regulator on his Twitter account, stating that it was “not fair, reasonable, or even serious in its commitment to digital assets.” by your company. Strictly speaking, the SEC has approved the ‘swap’ platform Kraken with $30 million and banned ‘staking’ service as it is the sale of unregistered securities.
1/ Today Coinbase received a Wells notice from the SEC focusing on staking and asset listings. A Wells notice often precedes an act of enforcement.
—Brian Armstrong (@brian_armstrong) March 22, 2023
stock crash
The SEC’s decision caused a new collapse in the price of Coinbase shares and among major cryptocurrencies. Shares of the ‘exchange’ platform They were down 8.16% to $77.14 today. and lowering the rise compared to last week. Also, due to the recent 0.25% rate hike by the Federal Reserve, bitcoin lost $28,000, 1.5%, and ethereum fell more than 2%.