Coinbase Responds to SEC’s Wells Notice with a Strong Defense
Coinbase has responded to the Securities and Exchange Commission’s (SEC) Wells notice that was issued to them last month. In a statement released on their official blog, Coinbase stated that they have provided a written and video submission to the SEC and had discussed these submissions with the SEC a few days ago.
The Wells notice from the SEC was vague and broad in nature, but Coinbase maintained that they are the same company that they were when the SEC allowed them to become public two years ago, after detailed discussions about the aspects of their business that are now under scrutiny.
Coinbase made it clear that they did not list securities then, and they still do not. They expressed their desire to do so in the future but stated that the SEC has not complied with the law by providing companies like Coinbase with a way to register for this purpose. Coinbase further added that they do not want to engage in litigation against the SEC, but they will vigorously defend themselves and stand up for the rule of law for everyone.
According to Paul Grewal, the Chief Legal Officer of Coinbase, the financial system still needs updating, and Coinbase will continue building. They will also continue to ask Congress for legislation and the SEC for rulemaking so that regulatory clarity is not left to the courts.
On April 25, Coinbase initiated legal proceedings against the SEC, seeking to compel a response to their petition. Additionally, company executives personally visited regulators around the same time.
In conclusion, Coinbase’s response to the SEC’s Wells notice shows their commitment to being as transparent as possible with their customers, stakeholders, and investors. While they do not want to engage in litigation with the SEC, they will defend themselves and stand up for the rule of law. Coinbase has also called for regulatory clarity from Congress and the SEC, so that the financial system can be updated in a more efficient and effective manner.
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