SEC Warns Coinbase It's Pursuing Enforcement Action Over Securities Violations

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SEC Warns Coinbase It's Pursuing Enforcement Action Over Securities Violations
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JUST IN: The SECgov has sent a Wells Notice – a formal warning of an enforcement action – to crypto exchange coinbase. nikhileshde jesseahamilton report

Explore the policy fallout from the 2022 market crash, the advance of CBDCs and more.Crypto exchange Coinbase may soon face an enforcement action tied to its listing of potential unregistered securities, the company said Wednesday.

“If needed, we welcome a legal process to provide the clarity we have been advocating for and to demonstrate that the SEC simply has not been fair or reasonable when it comes to its engagement on digital assets," said Paul Grewal, Coinbase's chief legal officer, in a statement."Until then, it’s business as usual.", Coinbase indicated that its digital asset listing process was not the subject of the notice.

Coinbase has publicly criticized the SEC for what it describes as a vague regulatory structure, petitioning the regulator in July to explain how digital assets could fit within securities laws.

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