Tag: coinbase global

Coinbase CEO Says the Crypto Exchange Has Been Always Transparent With US SEC

Coinbase Global’s CEO Brian Armstrong said on Wednesday that the crypto exchange has a long history of being transparent with the US Securities and Exchange Commission.

Armstrong was speaking in an interview with CNBC, a day after the company was sued by the US securities regulator on allegations it failed to register as an exchange.

“The SEC allowed us to become a public company … so, its not great to have a regulator come back and say, actually, we changed our mind,” Armstrong said.

The Securities and Exchange Commission (SEC) alleged Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon.

Coinbase shares rebounded on Wednesday to rise nearly 1 percent to $52.03 (nearly Rs. 4,000).

The stock has declined about 20 percent since the SEC sued Coinbase and rival Binance alleging securities law violations, wiping roughly $3 billion (nearly Rs. 24,800 crore) from Coinbase’s market value.

Short sellers have raked in roughly $463 million (nearly. Rs. 3,800 crore) in paper profits betting against Coinbase over the past two sessions, according to data from analytics firm Ortex.

Meanwhile, the US Securities and Exchange Commission have accused the company of operating illegally because it failed to register as an exchange. The lawsuit is the SEC’s second in two days against a major crypto exchange, following its case against Binance, the world’s largest cryptocurrency exchange, and founder Changpeng Zhao.

Crypto companies say the SEC rules are unclear, and that the agency is overreaching by trying to regulate them. On the other hand, ten US states led by California also on Tuesday accused Coinbase of securities law violations concerning its staking rewards program.

© Thomson Reuters 2023

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Coinbase Clarifies to US SEC That It Does Not List Securities and Has Not Broken Any Securities Laws

Coinbase Global has reiterated its view to the US Securities and Exchange Commission that it has not broken any securities laws in its formal response to a legal threat received from the regulator, the firm said on Thursday.

Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal said the crypto exchange would like to list securities in the future but would not feel comfortable given the regulatory uncertainty, in a video response to the SEC made public on Thursday.

“Coinbase does not list securities,” Grewal said.

Last month, Coinbase said the SEC had sent a Wells notice — a formal declaration the regulator’s staff intends to recommend an enforcement action.

The incident is one of the latest signs of escalating tensions between the crypto sector and the SEC, which has taken the position that many digital assets are securities and are operating illegally outside of its oversight. The SEC has increasingly sought to tackle what it considers a lack of compliance among crypto firm intermediaries.

“No law or regulation authorizes the SEC to charge Coinbase for the alleged violations in the Wells notice,” Grewal said, noting what he perceives as a change in view by SEC Chair Gary Gensler. “We are on the brink of a fight that doesn’t need to happen, and frankly shouldn’t happen.”

Earlier this week, Coinbase appealed to a federal court to force the SEC to say whether it will create new rules for digital assets. Coinbase last year filed a petition for such a rulemaking.

Coinbase’s deputy general counsel, Katherine Minarik, said in an interview the company will focus on growing outside the US as needed.

“We are going to leave no stone unturned to push for regulatory clarity here,” Minarik said.

© Thomson Reuters 2023

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