SEC Informs Crypto Exchange Coinbase of Potential Securities Law Violations

0 6

SEC Informs Crypto Exchange Coinbase of Potential Securities Law Violations

knife

The U.S. Securities and Exchange Commission (SEC) has sent Coinbase a “Wells notice” about potential violations of securities law. The Nasdaq-listed cryptocurrency exchange noted that, unlike what SEC Chairman Gary Gensler said, the securities regulator “will not let crypto companies ‘come in and register.’” Coinbase CEO Brian Armstrong explained: “A Wells notice typically precedes an enforcement action.”

Coinbase Receives a ‘Wells Notice’ From SEC

Cryptocurrency exchange Coinbase (Nasdaq: COIN) announced Wednesday that it has received a “Wells notice” from the U.S. Securities and Exchange Commission (SEC) “regarding an unspecified portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a cursory investigation.”

Coinbase detailed in a blog post:

Today’s Wells notice does not provide a lot of information for us to respond to. The SEC staff told us they have identified potential violations of securities law, but little more.

“We asked the SEC specifically to identify which assets on our platforms they believe may be securities, and they declined to do so,” the exchange revealed.

“A Wells notice typically precedes an enforcement action,” said Coinbase CEO Brian Armstrong on Twitter. “Two years ago the SEC reviewed our business in detail and approved Coinbase to go public. Our S1 [filing] clearly explained our asset listing process and included 57 references to staking,” the executive described.

SEC Chairman Gary Gensler often urged crypto companies to come in and register with the securities watchdog. However, Coinbase noted Wednesday:

The SEC will not let crypto companies ‘come in and register’ — we tried.

The Nasdaq-listed crypto platform stressed that it does not list securities tokens, or offer any products that are considered securities on its platform. In addition, the company has “repeatedly invited the SEC to raise any questions about any asset at all on our platform,” Coinbase said, adding that the securities regulator “raised none.”

The exchange revealed: “We met with the SEC more than 30 times over nine months, but we were doing all of the talking.”

Noting that “Coinbase has a rigorous process to analyze and review each digital asset before making it available on our exchange — a process that we shared in detail with the SEC as part of our public listing,” the exchange concluded:

The bottom line remains: Coinbase does not list securities or offer products to our customers that are securities.

In February, the SEC took action against crypto exchange Kraken over its staking program. The cryptocurrency exchange paid $30 million to settle with the securities regulator and shut down the program for U.S. users.

What do you think about the SEC sending Coinbase a Wells notice about possible securities law violations? Let us know in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 64,431.26
ethereum
Ethereum (ETH) $ 3,445.81
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 573.90
solana
Solana (SOL) $ 157.90
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,451.41
xrp
XRP (XRP) $ 0.585694
the-open-network
Toncoin (TON) $ 7.40
dogecoin
Dogecoin (DOGE) $ 0.124414
cardano
Cardano (ADA) $ 0.44747
tron
TRON (TRX) $ 0.13414
shiba-inu
Shiba Inu (SHIB) $ 0.000019
avalanche-2
Avalanche (AVAX) $ 28.13
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 64,355.24
polkadot
Polkadot (DOT) $ 6.47
chainlink
Chainlink (LINK) $ 14.40
bitcoin-cash
Bitcoin Cash (BCH) $ 388.26
near
NEAR Protocol (NEAR) $ 6.23
uniswap
Uniswap (UNI) $ 8.21
litecoin
Litecoin (LTC) $ 73.84
leo-token
LEO Token (LEO) $ 5.83
dai
Dai (DAI) $ 1.00
matic-network
Polygon (MATIC) $ 0.545911
pepe
Pepe (PEPE) $ 0.000012
wrapped-eeth
Wrapped eETH (WEETH) $ 3,576.12
internet-computer
Internet Computer (ICP) $ 9.62
kaspa
Kaspa (KAS) $ 0.180704
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.45
ethereum-classic
Ethereum Classic (ETC) $ 23.70
ethena-usde
Ethena USDe (USDE) $ 1.00
aptos
Aptos (APT) $ 7.00
stellar
Stellar (XLM) $ 0.108583
monero
Monero (XMR) $ 161.57
blockstack
Stacks (STX) $ 1.89
hedera-hashgraph
Hedera (HBAR) $ 0.077261
maker
Maker (MKR) $ 2,928.45
vechain
VeChain (VET) $ 0.031929
okb
OKB (OKB) $ 42.90
cosmos
Cosmos Hub (ATOM) $ 6.55
render-token
Render (RNDR) $ 6.55
filecoin
Filecoin (FIL) $ 4.44
crypto-com-chain
Cronos (CRO) $ 0.094428
mantle
Mantle (MNT) $ 0.768227
arbitrum
Arbitrum (ARB) $ 0.756717
injective-protocol
Injective (INJ) $ 23.63
immutable-x
Immutable (IMX) $ 1.48
dogwifcoin
dogwifhat (WIF) $ 2.22
sui
Sui (SUI) $ 0.854339
bittensor
Bittensor (TAO) $ 294.76
the-graph
The Graph (GRT) $ 0.214167
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,480.40
optimism
Optimism (OP) $ 1.80
first-digital-usd
First Digital USD (FDUSD) $ 1.00
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,835.78
bonk
Bonk (BONK) $ 0.000027
arweave
Arweave (AR) $ 28.40
floki
FLOKI (FLOKI) $ 0.000188
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,572.97
notcoin
Notcoin (NOT) $ 0.01627
lido-dao
Lido DAO (LDO) $ 1.80
ondo-finance
Ondo (ONDO) $ 1.08
aave
Aave (AAVE) $ 104.49
bitget-token
Bitget Token (BGB) $ 1.08
theta-token
Theta Network (THETA) $ 1.51
jasmycoin
JasmyCoin (JASMY) $ 0.030433
fantom
Fantom (FTM) $ 0.518467
whitebit
WhiteBIT Coin (WBT) $ 9.66
based-brett
Brett (BRETT) $ 0.138744
thorchain
THORChain (RUNE) $ 4.08
algorand
Algorand (ALGO) $ 0.159468
celestia
Celestia (TIA) $ 6.53
pyth-network
Pyth Network (PYTH) $ 0.340117
jupiter-exchange-solana
Jupiter (JUP) $ 0.882986
coredaoorg
Core (CORE) $ 1.32
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,399.27
quant-network
Quant (QNT) $ 79.42
mantra-dao
MANTRA (OM) $ 1.38
sei-network
Sei (SEI) $ 0.351503
gatechain-token
Gate (GT) $ 7.71
elrond-erd-2
MultiversX (EGLD) $ 35.68
flow
Flow (FLOW) $ 0.618308
flare-networks
Flare (FLR) $ 0.021022
kucoin-shares
KuCoin (KCS) $ 9.69
eos
EOS (EOS) $ 0.597124
gala
GALA (GALA) $ 0.024376
axie-infinity
Axie Infinity (AXS) $ 5.95
bittorrent
BitTorrent (BTT) $ 0.00000091004383
beam-2
Beam (BEAM) $ 0.017407
bitcoin-sv
Bitcoin SV (BSV) $ 44.49
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,496.91
ethereum-name-service
Ethereum Name Service (ENS) $ 27.24
tokenize-xchange
Tokenize Xchange (TKX) $ 10.77
dydx-chain
dYdX (DYDX) $ 1.42
akash-network
Akash Network (AKT) $ 3.54
msol
Marinade Staked SOL (MSOL) $ 189.23
popcat
Popcat (POPCAT) $ 0.845022
tezos
Tezos (XTZ) $ 0.820655
neo
NEO (NEO) $ 11.41
ethena
Ethena (ENA) $ 0.45918