Coinbase CEO Brian Armstrong has responded to the SEC’s lawsuit against the cryptocurrency exchange, emphasizing notable distinctions and calling for congressional action to address crypto regulations.
Armstrong pointed out that the SEC reviewed Coinbase’s business in 2021 and allowed the company to go public despite the allegations made in the 2019 lawsuit.
He tweeted, “In case it’s not obvious, the Coinbase suit is very different from others out there – the complaint filed against us is exclusively focused on what is or is not a security. And we are confident in our facts and the law.”
The SEC accuses Coinbase of violating the Exchange Act and Securities Act, specifically targeting four violations. It alleges that Coinbase operated as an unregistered broker, exchange, and clearing agency since at least 2019.
The regulator’s focus on securities includes SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Armstrong highlighted Coinbase’s efforts to comply, stating, “There is no path to ‘come in and register’ – we tried, repeatedly – so we don’t list securities. We reject the vast majority of assets we review.”
The CEO further emphasized the need for new legislation to address the situation and praised global efforts to establish clear rules supporting blockchain technology.
In a video shared by Armstrong, it was revealed that Coinbase had engaged in 30 meetings with the SEC in 2022 seeking guidance.
The SEC’s lawsuit against Coinbase comes just one day after filing a lawsuit against Binance, targeting the Binance.US Staking Program and alleging the listing of securities.