As CryptoGlobe reported earlier today (June 6, 2023), the U.S. Securities and Exchange Commission (SEC) has charged Coinbase, Inc., a leading crypto asset trading platform, with operating as an unregistered national securities exchange, broker, and clearing agency. The SEC also accused Coinbase of failing to register the offer and sale of its crypto asset staking-as-a-service program, according to the SEC’s press release.
The SEC alleges that since 2019, Coinbase has unlawfully facilitated the buying and selling of crypto asset securities, intertwining the traditional services of an exchange, broker, and clearing agency without proper registration. The SEC further claims that Coinbase’s failure to register has deprived investors of significant protections, including SEC inspection, recordkeeping requirements, and safeguards against conflicts of interest.
Coinbase Co-Founder and CEO Brian Armstrong took to Twitter to express his company’s stance in response to these charges.
Armstrong expressed that Coinbase is ready to defend the crypto industry in court to gain much-needed clarity on cryptocurrency regulations. He reminded his audience that Coinbase had undergone SEC scrutiny and was permitted to go public in 2021.
He emphasized the absence of a straightforward path to registration, despite Coinbase’s repeated attempts. Armstrong pointed out the inconsistency in the regulatory landscape, with the SEC and the CFTC providing conflicting definitions of securities and commodities.
Armstrong criticized the SEC’s approach of regulating through enforcement, which he believes is detrimental to the American crypto industry. Despite the charges, he expressed confidence in Coinbase’s position and the law, noting that the complaint is solely focused on the definition of a security.
Featured Image Credit: Coinbase