Coinbase’s CEO Brian Armstrong took to Twitter to tell the crypto community that the SEC are at Coinbase’s door.
According to Armstrong, the SEC issued a Wells notice on staking services and crypto assets to the exchange.
Action from the SEC against Coinbase is to be expected.
Coinbase issued Wells notice from the SEC
The SEC has arrived at Coinbase. After law enforcement shut down Kraken exchange's retail staking services earlier this year, regulators then went after Circle's USDC stablecoin as well as Binance's BUSD coin.
According to Armstrong, the SEC wants to challenge Coinbase on their current staking services and token listings. Armstrong says the exchange has followed the law and is willing to work with regulators to settle any issues.
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At the bottom of the Twitter thread, Armstrong provided a link to a Coinbase blog post about the SEC’s interactions with Coinbase. Coinbase claims in the post that they requested "reasonable" crypto guidelines from the SEC before the SEC issued a Wells notice, endangering Coinbase's Earn program, Coinbase Wallet, listed cryptocurrencies, and Coinbase Prime.
Coinbase argues that their business practises have always been honest and that their token listings adhere to government regulations.
We are confident in the legality of our assets and services, and if needed, we welcome a legal process to provide the clarity we have been advocating for and to demonstrate that the SEC simply has not been fair or reasonable when it comes to its engagement on digital assets.
Rest assured, Coinbase products and services continue to operate as usual - today’s news does not require any changes to our current products or services.