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

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

By Reuters | Updated: 27 April 2023 23:56 IST

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

Coinbase CEO Brian Armstrong said the crypto exchange would like to list securities in the future

Highlights

The incident is latest signs of tensions between crypto sector, the SEC
The SEC has increasingly sought to tackle lack of compliance among crypto
Coinbase last year filed a petition for new rules for digital assets

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

Smartphone companies have launched many compelling devices over the first quarter of 2023. What are some of the best phones launched in 2023 you can buy today? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.