{"id":19043,"date":"2023-03-23T00:21:44","date_gmt":"2023-03-23T00:21:44","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-informs-crypto-exchange-coinbase-of-potential-securities-law-violations-regulation-bitcoin-news\/"},"modified":"2023-03-23T00:21:44","modified_gmt":"2023-03-23T00:21:44","slug":"sec-informs-crypto-exchange-coinbase-of-potential-securities-law-violations-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-informs-crypto-exchange-coinbase-of-potential-securities-law-violations-regulation-bitcoin-news\/","title":{"rendered":"SEC Informs Crypto Exchange Coinbase of Potential Securities Law Violations \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The U.S. Securities and Exchange Commission (SEC) has sent Coinbase a \u201cWells notice\u201d about potential violations of securities law. The Nasdaq-listed cryptocurrency exchange noted that, unlike what SEC Chairman Gary Gensler said, the securities regulator \u201cwill not let crypto companies \u2018come in and register.’\u201d Coinbase CEO Brian Armstrong explained: \u201cA Wells notice typically precedes an enforcement action.\u201d<\/strong><\/p>\n

Coinbase Receives a \u2018Wells Notice\u2019 From SEC<\/h2>\n

Cryptocurrency exchange Coinbase (Nasdaq: COIN) announced Wednesday that it has received a \u201cWells notice\u201d from the U.S. Securities and Exchange Commission (SEC) \u201cregarding an unspecified portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a cursory investigation.\u201d<\/p>\n

Coinbase detailed in a blog post:<\/p>\n

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Today\u2019s Wells notice does not provide a lot of information for us to respond to. The SEC staff told us they have identified potential violations of securities law, but little more.<\/p>\n<\/blockquote>\n

\u201cWe asked the SEC specifically to identify which assets on our platforms they believe may be securities, and they declined to do so,\u201d the exchange revealed.<\/p>\n

\u201cA Wells notice typically precedes an enforcement action,\u201d said Coinbase CEO Brian Armstrong on Twitter. \u201cTwo years ago the SEC reviewed our business in detail and approved Coinbase to go public. Our S1 [filing] clearly explained our asset listing process and included 57 references to staking,\u201d the executive described.<\/p>\n

SEC Chairman Gary Gensler often urged crypto companies to come in and register<\/a> with the securities watchdog. However, Coinbase noted Wednesday:<\/p>\n

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The SEC will not let crypto companies \u2018come in and register\u2019 \u2014 we tried.<\/p>\n<\/blockquote>\n

The Nasdaq-listed crypto platform stressed that it does not list securities tokens<\/a>, or offer any products that are considered securities on its platform. In addition, the company has \u201crepeatedly invited the SEC to raise any questions about any asset at all on our platform,\u201d Coinbase said, adding that the securities regulator \u201craised none.\u201d<\/p>\n

The exchange revealed: \u201cWe met with the SEC more than 30 times over nine months, but we were doing all of the talking.\u201d<\/p>\n

Noting that \u201cCoinbase has a rigorous process to analyze and review each digital asset before making it available on our exchange \u2014 a process that we shared in detail with the SEC as part of our public listing,\u201d the exchange concluded:<\/p>\n

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The bottom line remains: Coinbase does not list securities or offer products to our customers that are securities.<\/p>\n<\/blockquote>\n

In February, the SEC took action against crypto exchange Kraken over its staking program. The cryptocurrency exchange paid $30 million<\/a> to settle with the securities regulator and shut down<\/a> the program for U.S. users.<\/p>\n

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Brian Armstrong<\/a>, Coinbase<\/a>, SEC<\/a>, SEC Brian Armstrong<\/a>, sec coinbase<\/a>, SEC Coinbase Earn<\/a>, SEC Coinbase meeting<\/a>, SEC Coinbase registration<\/a>, SEC Coinbase staking<\/a>, SEC Wells Notice Coinbase<\/a>, wells notice<\/a><\/div>\n<\/div>\n

What do you think about the SEC sending Coinbase a Wells notice about possible securities law violations? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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