Coinbase is Boosting Its Fight Against the SEC
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Crypto exchange Coinbase is upping its fight against the Securities and Exchange Commission (SEC). The company received a Wells notice from the federal agency over a month ago, and it’s not happy that Gary Gensler and his cronies are targeting its operations.
Coinbase Vs. the SEC: Who Will Win?
A Wells notice doesn’t necessarily mean that a company is being charged with a crime. Rather, it’s a warning or indication that charges are likely coming, and thus the company may want to consult with a legal team to get itself prepared.
Coinbase took serious issue with the notice given it has allegedly met with the SEC over 30 times in the past nine years as a means of always familiarizing itself with present laws and trying to stay compliant.
Nevertheless, the SEC has made it clear it does not care about which crypto companies are following rules or not. It’s simply going after any digital currency company it can as a means of making a statement. The SEC doesn’t want crypto around, and it’ll do just about anything to end the industry in America once and for all.
Coinbase issued a statement in May claiming that if the SEC was dumb enough to charge it with a crime or go against it in some way, it would work against the agency and pose “major programmatic risks.” The company also said that the SEC would “fail on the merits.”
The statement also mentioned:
Coinbase does not list, clear, or effect trading in securities.
Legal compliance officer for the exchange Paul Grewal also said to separate news sources:
At the time when we went public, we had detailed discussions with the SEC about the very aspects of our business that are now — two years later — the subject of the Wells notice. Nothing has changed.
He stated that the SEC reviewed all forms when it went public and that it could have denied the company’s plans back in 2021.
The SEC had developed a reputation for being a bully when it comes to crypto, or any companies involved in the digital currency arena. Not long ago, Kraken – a popular trading platform based in Northern California – was the subject of SEC scrutiny that saw it lose more than $30 million in penalty fees. It was also forced to cease all staking activities and services.
Nothing’s Changed!
Coinbase is claiming total innocence in the present matter and said:
Coinbase’s retail staking services fail all four prongs of the Howey test. The SEC generally does not acknowledge the existence or non-existence of any investigation unless or until charges are filed. Coinbase has never wanted to litigate with the Commission. The Commission should not want to litigate either. Litigation will put the Commission’s own actions on trial.
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