After the company received Wells’ notice, several prominent crypto industry figures came to defend Coinbase.
Porygon defends coinbase
Wells’ notice received by Coinbase indicates that the U.S. Securities and Exchange Commission likely intends to sue the exchange.
In response, Polygon Labs President Ryan Watt said: March 23rd The crypto industry “must support Coinbase,” he tweeted. Coinbase has the trust of the public, but regulators and politicians are “eroding that trust,” he said.
Watt further said that many large companies such as Starbucks, Meta and Nike are using public blockchains such as Polygon. He said these major partnerships offer myriad economic and employment opportunities, and warned that if regulators crack down on the industry, companies will work with overseas blockchain firms instead.
Polygon’s native token (MATIC) is listed on Coinbase.
David Marcus is Coinbase’s ally
David Marcus, former head of Meta’s crypto project, said: Admitted Coinbase’s engagement with regulators and willingness to “play by the rules”. He lamented that co-operative firms were treated more harshly by regulators than those that committed fraud, pointing out that the now-collapsed FTX exchange was not regulated so tightly.
Like Coinbase, Meta’s own Diem cryptocurrency project has been affected by overregulation. This was one factor in the closure of Diem in January 2022.
Comments from other industry leaders
Blockchain Association Chief Policy Officer Jake Chervinsky said: also admitted That Coinbase spent an “unusual amount” of resources working with the SEC. The Blockchain Association said it “supports” Coinbase.
Elsewhere, Ryan Selkis, CEO of crypto research firm Messari, said: sent a letter to a member of parliament We want fair regulation of the crypto industry. While his letter does not directly mention Coinbase, it was written on the same day, so it was likely prompted by Coinbase Wells’ notice, which was later retweeted by his CEO of Coinbase, Brian Armstrong.
Justin Slaughter, policy director at crypto-focused VC firm Paradigm, also commented on the situation. Slaughter previously held positions with the US SEC and CFTC. Proposed Some individuals in the government personally sympathize with Coinbase.
The SEC has not yet filed a lawsuit against Coinbase, but the company intends to fight the SEC in court should lawsuits be filed. If that happens, other cryptocurrency companies and leaders are likely to side with Coinbase.