Brian Armstrong, CEO of Coinbase, and Paul Grewal, the company’s CLO, have responded to the Wells Notice issued by the SEC. In a recent YouTube video, the Coinbase executives explained that the SEC’s notice was unnecessary, as the US government has yet to establish clear rules for the crypto industry. The exchange remains committed to regulatory compliance.
Coinbase Reacts to Wells Notice via Video
The SEC issued a notice against Coinbase on March 22, alleging that the platform offered unregistered securities. Armstrong and Grewal expressed disappointment at the agency for choosing a legal battle over constructive dialogue on Twitter that same day. They previously said Coinbase was compliant with securities laws in asset listings and staking services and reiterated this view in the video.
“We are committed to working within the regulatory perimeter, and we want to see a clear market structure for trading crypto securities. Not all crypto assets are securities… We’re going to work with multiple regulators to make this industry safe and trusted,” said Armstrong.
Coinbase Doubles Down on Crypto Framework Request
Armstrong argued that the Wells Notice is unconstructive given the lack of clear rules for the crypto industry in the US. While the exchange is prepared to defend its position in court, it prefers “true dialogue” with regulators to determine a path forward for the industry. Grewal echoed Armstrong’s comments and said Coinbase rejects about 90% of the assets reviewed for listing.