coinbase announced that it has received a letter of potential inquiry into the listing of COIN. The company stated that the letter was sent because of the claim that the token was listed as an “unregistered security.”
Coinbase’s statement SECstated that it is evaluating the possibility of violating securities laws in the conduct of exchange and staking services. The regulator targeted Coinbase with a so-called Wells notice announcing that the agency was planning future action, which could include an injunction or cease and desist, without specifying exactly what activity was violated.
Paul Grewal, Coinbase chief legal officer, commented, “We welcome a legal process, if necessary, to provide the clarity we advocate and demonstrate that the SEC is not fair or unreasonable when it comes to its engagement in digital assets.” The lawyer clearly expressed his stance with the words “Until then, we will go about our business as usual”.
Shock of Lawsuits to Justin Sun and Companies: Turks’ Favorite Altcoins Under Threat!
On the other hand, another application made by Coinbase to the SEC referred to discussions with the institution. According to the company, the reason for the letter appears to be related to the spot market, staking service Earn, Prime or Wallet.
As Koinfinans.com reported, this notification is preliminary and does not mean a final decision. As a matter of fact, the company has until March 29 to submit objections and evidence.
Coinbase CEO Brian Armstrong also tweeted on Wednesday about the Wells statement. threw.
1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
— Brian Armstrong (@brian_armstrong) March 22, 2023
An expert on the subject told CoinDesk that the exchange has already held more than 60 meetings on the registration and listing of digital assets, and these meetings did not go very well.
Coinbase publicly criticized the SEC for describing it as an uncertain regulatory body and petitioned the regulator in July to explain how digital assets could comply with securities laws.
Coinbase shares tumbled more than 11% after-hours Wednesday after the news broke.
You can follow the current price action here.