Coinbase Execs Laugh Off SEC's Wells Notice
Coinbase founder Brian Armstrong and Chief Legal Officer Paul Grewal addressed the SEC's Wells notice with a sincere tone on YouTube and at Consensus 2023. Paul stated that their commitment to regulatory compliance has never wavered, empha
Grewal attributed the SEC's new view to the influence of FTX and quoted SEC Chair Gary Gensler, "I feel that we have enough authority, I really do, in this space." He highlighted that Coinbase is already regulated, holding a New York State "BitLicense," and suggested that legislation or rulemaking is needed if the SEC wants to expand its oversight into the crypto industry.
At Consensus 2023, Grewal expressed their eagerness to collaborate with regulators, saying, "We are literally sitting up here on stage asking for regulation, asking for rules, asking for a framework that makes sense for our particular technology so that we can be registered."
Regarding the "broad but fundamentally vague" Wells notice, Grewal explained, "We still do not know exactly what it is that we do that is of concern to the SEC." He further mentioned that the SEC had asked Coinbase last summer to develop a proposal for crypto companies to register if they want to list securities. However, the SEC discontinued the discussion before responding to Coinbase's proposals, leading to the issuance of the Wells notice on March 22.
The serious response from Coinbase's executives showcases their confidence in the company's compliance and their willingness to work with regulators. It also demonstrates the ongoing tension between the cryptocurrency industry and regulatory bodies like the SEC as they navigate the rapidly evolving landscape.
At Consensus 2023, Grewal expressed their eagerness to collaborate with regulators, saying, "We are literally sitting up here on stage asking for regulation, asking for rules, asking for a framework that makes sense for our particular technology so that we can be registered."
Regarding the "broad but fundamentally vague" Wells notice, Grewal explained, "We still do not know exactly what it is that we do that is of concern to the SEC." He further mentioned that the SEC had asked Coinbase last summer to develop a proposal for crypto companies to register if they want to list securities. However, the SEC discontinued the discussion before responding to Coinbase's proposals, leading to the issuance of the Wells notice on March 22.
The serious response from Coinbase's executives showcases their confidence in the company's compliance and their willingness to work with regulators. It also demonstrates the ongoing tension between the cryptocurrency industry and regulatory bodies like the SEC as they navigate the rapidly evolving landscape.
