CoinDesk Consensus

coinbase revealed in March 22 We are pleased to announce that we have received a Wells Notice from the U.S. Securities and Exchange Commission (SEC).

Coinbase could be sued

Wells’ notice means the SEC has made a preliminary decision recommending enforcement action against Coinbase.

If the SEC initiates legal action, it will most likely allege Coinbase has violated federal securities laws. department, and other services such as Coinbase Earn, Coinbase Prime, and Coinbase Wallet.

coinbase is officially recognized Blog Wells Notice. It confirmed that the above service areas are under scrutiny, but also said the notification did not contain enough information to provide a more detailed response.

The company said it refused to allow the SEC to identify certain cryptocurrencies and assets that could be considered securities. .

Wells’ notice follows its involvement with the SEC. Coinbase said Wells’ notice specifically related him to his SEC investigation, which was reported in the summer of 2022, but the company said he was also involved with the SEC for several years before that investigation. rice field.

Will Coinbase Fight or Solve?

Coinbase said today that it believes its services are legitimate and that it “welcomes legal proceedings”.

In contrast, a personal statement from a Coinbase executive suggests the company intends to fight the SEC in court.CEO Brian Armstrong said on Twitter His firm says it seeks to show that the SEC is “not fair, unreasonable, and shows no serious purpose.” Meanwhile, Coinbase CLO’s Paul Grewal said, said The company is “useful [itself] Changes to the court system will finally start to clarify the crypto industry. “

It is also possible that Coinbase will not be prosecuted. In a recent blog post, the company said Wells’ notice was “not a formal indictment or lawsuit, [but] can lead to 1.

However, crypto companies have largely failed to fight the SEC, so there is little reason for regulators to hold off on prosecution.

By Jules

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