A fight between the U.S. Securities and Exchange Commission (SEC) has crypto exchange firm, Coinbase has been going on since March. The regulatory body issued a Wells Notice to the firm on March 22. The assets concerning the notice given were unspecified. The assets might include staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
Demands for proper rules and regulations for the industry have been made numerous times since then. People have also called out the SEC for its harsh treatment of crypto. Due to this harsh climate, many firms have been planning on relocating from the U.S. Coinbase is among those firms who have expressed this desire.
Coinbase has once again responded to a notice sent last month, this time in the form of a video. This video was accompanied by a written submission to the regulatory body.
Armstrong said unequivocally in the submission that “Coinbase is the same company that they were two years ago when the SEC approved their operations and going public.” He also noted that, despite the lack of regulatory certainty, they have attempted to do the right thing and exhibited good faith as a cryptocurrency exchange and trading platform.
Coinbase is willing and dedicated to operating inside the regulatory boundaries. As is stated in the letter to the SEC and shown in the video clip. He also said that the crypto exchange would want to see a defined market structure for trading crypto assets. He added that at this stage and time when there is no clear rule book for crypto operations, a ‘Wells notice from the SEC is not constructive and is bad for America.”
The team at Coinbase is fighting hard against the harsh treatment. Armstrong said they would prefer and welcome a true dialogue with the SEC. But, he says that they will fight if the matter goes to court. Just a couple of days ago, Coinbase filed a petition against the SEC to receive clearer instructions regarding the operations of the crypto industry.
Meanwhile, SEC Chair Gary Gensler reiterated in a Thursday video that most digital assets are securities and that crypto companies must follow the existing and clear rules. Furthermore, he claims that crypto firms are performing multiple functions at the same time, such as exchanges, brokerages, and clearing houses. This according to him creates conflicts of interest that undermine the time-tested investor protections.
