- Coinbase has submitted a Wells response to the SEC, defending its business.
- The crypto exchange has said it is ready to defend itself vigorously in litigation.
- Nonetheless, it welcomes dialogue about a workable path forward for the industry.
Executives of the Coinbase crypto exchange, including the CEO Brian Armstrong and the company’s chief legal officer Paul Grewal have submitted a “Wells response” to the US Securities and Exchange Commission (SEC).
The response comes after the US regulator warned the exchange of potential securities charges in late March. In the reply, Armstrong said a Wells Notice at this stage of the crypto industry development with no clear rule book is not constructive nor in the best interest of Americans.
“We are prepared to defend that position in court,” said the Coinbase CEO in a YouTube video on Thursday. “But it doesn’t have to come to that,” Armstrong clarified, “We welcome a true dialogue about a workable path forward for our industry.”
On the other hand, Coinbase’s chief legal officer said the firm has continuously engaged with the SEC about its business operations for many years, including sharing legal views on its asset listing and staking services. However, according to Grewal, the regulator has not been forthcoming.
We have repeatedly asked SEC for its own views on how securities laws might apply to Coinbase and our industry. To be candid, we’ve mostly gotten silence in response.
The attorney reaffirmed the position of the CEO, saying, “Coinbase will defend itself vigorously in litigation if it comes to that.” Furthermore, Coinbase encourages individuals interested in precise crypto regulation to sign up for #Crypto435 to join nearly 40,000 other people across all 435 Congressional Districts to make their voices heard on crypto policy.