Coinbase in Hot Water as SEC Sends Wells Notice, Threatens Legal Action

Coinbase in Hot Water as SEC Sends Wells Notice, Threatens Legal Action

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The US largest cryptocurrency exchange is the latest victim of intense scrutiny by the US Securities and Exchange Commission after receiving a Wells Notice indicating that Coinbase exchange might have violated US securities laws.

The notice was not detailed enough, although, it informed Coinbase of potential litigation and furthered that its next move could lead to injunctions and cease-and-desist orders against aspects of its business including Coinbase asset listing as well as Coinbase staking program.

Coinbase Fires Back

In a March 22 blog post, Coinbase confirmed that it received Wells Notice from the US financial regulators.

Meanwhile, Coinbase in the blog post said that all it demanded from the financial watchdog is proper crypto rules for US citizens, instead, SEC responded with legal threats.

According to Coinbase, the SEC staff said the agency has identified potential violations of securities laws by Coinbase.

“We asked the SEC specifically to identify which assets on our platforms they believe may be securities, and they declined to do so,” Coinbase said in the post, putting the blame on the SEC.

Coinbase also said that over time, it has sent multiple proposals to the regulators regarding the registration of assets but its proposals have been declined several times by SEC.

Furthermore, Coinbase calls for a better regulatory environment for crypto in the US, calling on the SEC to develop a regulatory framework for crypto.

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