American cryptocurrency giant Coinbase received a Wells notice from the Securities and Exchange Commission today. The company’s shares plunged in after-hours trading following Coinbase’s filing on Wells’ notice.
According to a Coinbase SEC filing on the matter, the company made a “preliminary decision” to recommend that the SEC take enforcement action against the company, alleging violations of federal securities laws by agency staff. I wrote that I notified the company about it. ”
On Wednesday, the SEC also took legal action against Tron founder Justin Sun for possible securities violations.
In response to the news, Coinbase CEO Brian Armstrong took a confident stance, saying, Tweet He said his company was “legally correct, confident in the facts, and welcomes the opportunity for Coinbase (and thus the broader crypto community) to go to court.”
and another tweet Armstrong cited an SEC review of his company during the IPO process and the fact that its S-1 filing contained “57 references to staking.” Usually an asset for some kind of return. The SEC has taken action against other crypto exchanges, including Kraken, which has paid a $30 million fine and ended its offering of “staking as a service,” according to the SEC’s words.
At the time, the SEC’s language appeared to indicate that staking through third-party services could violate securities laws. Coinbase Wells’ notice and subsequent comments by the company provide more clarity on when staking will become an activity that falls under normal securities laws and when it will be permitted without additional legal scrutiny. Indicates that there is a possibility of connection.
Crypto regulations around the world are dictated by the amount of capital flowing through decentralized economic environments, the need to protect customers, and the simple fact that blockchain-based assets and their activities, a somewhat new technology, are still nested inside. Because it’s a hot topic.of existing government regulations on investment
At the time of writing, Coinbase’s stock price has fallen an additional 13.8% in after-hours trading, after dropping about 8.2% in regular trading.
