{"id":20327,"date":"2023-04-27T22:28:47","date_gmt":"2023-04-27T22:28:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/coinbase-shares-wells-response-challenges-secs-change-in-attitude-towards-its-core-businesses-bitcoin-news\/"},"modified":"2023-04-27T22:28:47","modified_gmt":"2023-04-27T22:28:47","slug":"coinbase-shares-wells-response-challenges-secs-change-in-attitude-towards-its-core-businesses-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/coinbase-shares-wells-response-challenges-secs-change-in-attitude-towards-its-core-businesses-bitcoin-news\/","title":{"rendered":"Coinbase Shares Wells Response, Challenges SEC’s Change in Attitude Towards Its Core Businesses \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On April 27, Coinbase, the crypto exchange based in San Francisco, made public the disclosure of its response to the Wells notice it had received from the U.S. Securities and Exchange Commission (SEC) back in March. The company maintained that the regulatory body\u2019s enforcement actions were in direct contrast to the agency\u2019s previous approval of the firm\u2019s public listing via its S-1 filing. Coinbase asserted in its response to the SEC that it is the \u201cinnocent investors who stand to lose the most from the commission\u2019s abrupt about-face.\u201d<\/strong><\/p>\n

Coinbase Responds to U.S. Securities Watchdog\u2019s Wells Notice<\/h2>\n

Coinbase\u2019s CEO, Brian Armstrong, presented<\/a> his company\u2019s response to the U.S. securities regulator on Thursday, divulging their Wells response<\/a>. In direct opposition to the SEC\u2019s enforcement actions<\/a>, Coinbase maintains a firm disagreement, while the correspondence made it clear that the regulator should have been aware of this stance when Coinbase went public.<\/p>\n

\"Coinbase
Coinbase went public on Nasdaq on April 14, 2021.<\/figcaption><\/figure>\n

The animosity between the two entities was further highlighted in Coinbase\u2019s response, where the exchange explained that the SEC had neglected to provide clear guidelines for the regulator\u2019s recent enforcement actions.<\/p>\n

\u201cIf the commission had believed in April 2021 that Coinbase\u2019s core businesses violated securities law, it would have been required by its own mandate to prevent the S-1 from becoming effective to protect the investing public,\u201d the response says. \u201cInstead, it allowed the offering to proceed, and millions of members of the public invested their savings in Coinbase. Investors could only infer by this approval that the Commission did not think Coinbase\u2019s core business was unlawful.\u201d<\/p>\n

Coinbase CEO: \u2018We\u2019re Confident in the Facts and on the Law\u2019<\/h2>\n

On Thursday, Armstrong reaffirmed Coinbase\u2019s commitment to creating innovative products that promote economic freedom. \u201cWe are committed to building in the U.S. and around the world,\u201d declared<\/a> the Coinbase CEO. \u201cWe will defend ourselves and stand up for the rule of law.\u201d<\/p>\n

Coinbase\u2019s Wells response conveyed its bewilderment at the regulatory body\u2019s abrupt change in attitude, particularly given the exchange\u2019s extensive interaction with the SEC during its public listing process. \u201cThe staff\u2019s laundry list of proposed charges all rest on three primary legal theories, each of which is flawed and untested,\u201d asserted the missive.<\/p>\n

Coinbase\u2019s Wells response comes on the heels of the company\u2019s announcement<\/a> that it had initiated legal proceedings in federal court, demanding that the SEC respond to their petition filed in July of 2022. Similarly, the Wells response pledged to continue cooperating with the SEC in the hopes of amicably resolving the matter.<\/p>\n

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\nTags in this story
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Brian Armstrong<\/a>, Coinbase<\/a>, crypto exchange<\/a>, enforcement actions<\/a>, federal court<\/a>, Innocent Investors<\/a>, legal proceedings<\/a>, S-1 filing<\/a>, San Francisco<\/a>, SEC<\/a>, U.S.Securities and Exchange Commission<\/a>, wells notice<\/a><\/div>\n<\/div>\n

What are your thoughts on Coinbase\u2019s response to the SEC\u2019s Wells notice and its stance on the regulatory body\u2019s enforcement actions? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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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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