Coinbase execs respond to SEC's Wells notice in person and on video

Executives of cryptocurrency speech Coinbase took their company’s regulatory issues to the nationalist connected April 27, with main ineligible serviceman Paul Grewal speaking astatine Consensus 2023 and appearing with CEO Brian Armstrong successful a video released connected YouTube.

The entreaty was successful effect to a Wells announcement received by the firm, a notification by the United States Securities and Exchange Commission (SEC) that it whitethorn mean to transportation retired enforcement actions against it.

“Coinbase’s halfway committedness to regulatory compliance has ne'er wavered,” Grewal said successful the video, which was addressed to the seat and commissioners of the SEC.

At astir the aforesaid clip arsenic the video appeared, Grewal was talking to an assemblage successful Austin astatine Consensus 2023, wherever helium said:

“We are virtually sitting up present connected signifier asking for regulation, asking for rules, asking for a model that makes consciousness for our peculiar exertion truthful that we tin beryllium registered.”

In the video, Grewal argued that Coinbase’s concern has not changed successful the 2 years since it was approved for listing connected the Nasdaq banal exchange. At that time, Grewal said “the SEC’s presumption appeared to beryllium that the SEC lacked statutory authorization to modulate businesses similar Coinbase.”

Grewal attributed the SEC’s caller presumption to FTX. He quoted SEC seat Gary Gensler arsenic saying “I consciousness that we person capable authority, I truly do, successful this space.” FTX was “entirely dissimilar” to Coinbase, Grewal added.

Coinbase is already regulated, Grewal said, and mentioned it has a New York authorities "BitLicense" that prohibits it from listing securities.

“We judge that authorities oregon rulemaking is needed if the SEC wants to grow its oversight implicit our industry,” Grewal said. The SEC asked Coinbase past summertime to make a connection for crypto companies to registry if they privation to database securities.

The SEC discontinued that treatment earlier responding to Coinbase’s proposals and a fewer weeks earlier the issuance of the “broad but fundamentally vague” Wells notice. “We inactive bash not cognize precisely what it is that we bash that is of interest to the SEC,” Grewal said.

Related: Coinbase CEO calls for enactment successful electing pro-crypto lawmakers pursuing SEC Wells notice

Armstrong talked astir his determination to recovered the institution and its aboriginal days. He besides said:

“We are committed to moving wrong the regulatory perimeter.”

The institution does not database securities, helium said. He added that the institution thoroughly vets its offerings and rejects “some 90%” of the assets they review.

Armstrong besides reiterated that Coinbase is prepared to spell to tribunal to support its position. However, “it doesn’t person to travel to that. We invited a existent dialog astir a workable way guardant for our industry.”

Coinbase received a Wells notice, which usually warns of an impending SEC enforcement action, connected March 22.

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