Global cryptocurrency exchange Coinbase’s Chief Legal Officer, Paul Grewal, and CEO Brian Armstrong respond to a Wells notice from the SEC (Securities and Exchange Commission) indicating possible enforcement actions against the company.
Grewal stated in the video that Coinbase’s core commitment to regulatory compliance has never changed and argued that the company had been regulated with a “BitLicense” in New York state that prohibits it from listing securities.
Grewal added that since receiving permission two years ago to list on the Nasdaq stock exchange, Coinbase’s operations have stayed the same.
He thinks that legislation or rulemaking is required if the SEC wants to increase its control over the sector. According to Armstrong, the company does not list securities and carefully examines its offerings, rejecting about 90%.
Grewal added that Coinbase had been asked by the SEC to create a plan for crypto businesses to register to list securities.
However, the SEC ended the conversation before responding to Coinbase’s suggestions, and on March 22, it published a “broad but fundamentally vague” Wells notice that foreshadowed future SEC enforcement action.
In response, Armstrong stated that Coinbase is committed to working within the regulatory perimeter and has no issues going to court to defend its position. However, he welcomes an authentic dialogue about a workable path forward for the industry.
Last month, Coinbase received a Wells Notice from the U.S. SEC regarding Coinbase’s listed digital assets, Coinbase Earn, Coinbase Prime, and Coinbase Wallet. However, Grewal noted that Coinbase believes regulation is necessary and is asking for a framework that makes sense for its technology to be registered.
Also Read: Coinbase Strikes Back at SEC: Sues for Clear Crypto Regulations
