Coinbase was issued a Wells Notice by the U.S. Securities and Exchange Commission on Wednesday, saying company executives Twitter space Discuss decisions and next steps for Coinbase to create a legal framework for the crypto world.
“Regulators should come up with the rules, tell everyone about them, and follow them,” CEO Brian Armstrong said during the conversation. “The current law is not clear and we want to make it clearer.”
According to Coinbase’s SEC filing, agency staff “reported to the company that it had made a ‘preliminary decision’ recommending that the SEC take enforcement action against the company, alleging violations of federal securities laws. I notified you.”
Coinbase Chief Legal Officer Paul Grewal said in a Twitter chat, “Looking at the current situation, I think it’s easy to conclude that the SEC is trying to change the game.” The thing is that the SEC is looking to cancel games after they’ve been played, so we think it’s very important to keep our focus on what this means. [longer term for Coinbase and the industry]”
In Wednesday’s filing, the SEC’s language appeared to indicate that staking through third-party services could violate securities laws.
But the existing securities law, which was enacted almost 90 years ago, simply doesn’t work for low-intermediation digital assets that use innovative blockchain technology, said Sheila Warren, CEO of the Crypto Council for Innovation. said. “There is no current framework in the United States, so it is impossible for cryptocurrency companies to operate in the United States without facing regulatory implications,” she added.
