US SEC may initiate enforcement action against Coinbase exchange

The US SEC agency sent a Wells notice to the Coinbase exchange over its staking & listed crypto assets trade services. 

Coinbase is a Nasdaq-listed crypto exchange. In the crypto sector, Coinbase is the most reputed crypto exchange because this exchange always follows all the US regulation systems to comply with the regulation system. 

On 22 March 2023, Coinbase exchange published a blog post and confirmed that the United States Securities and Exchange Commission (SEC) sent a Wells notice over its crypto services.

According to the Coinbase exchange, the SEC may initiate an enforcement action against the exchange’s crypto staking services and also noted that SEC may target its Coinbase Earn; listed digital assets; its wallet; or Coinbase Prime services.

Coinbase chief legal officer Paul Grewal revealed that the Coinbase team approached the SEC agency more than 30 times to get clarity on the nature of the listed crypto assets, which are security under the purview of the SEC agency but failed to get a response from the agency. 

In short, the SEC agency failed to respond or provide any information about any crypto asset or the nature of any crypto service on the Coinbase exchange.

On 23 March 2023, Coinbase CEO Brian Armstrong said that two years ago Coinbase went public, after the complete review & approval by the SEC agency over the Coinbase services. And also after that, Coinbase rejected almost 90% of crypto listing applications, to comply with the regulation system.

Coinbase’s CEO confirmed that its services will continuously remain open as usual and also indirectly confirmed that Coinbase is ready to fight against the SEC agency in court.

Read also: MasterCard will allow stablecoin payments in APAC region