Coinbase, one of the most prominent cryptocurrency exchanges in the world, has announced that it has received a Wells Notice from the US Securities and Exchange Commission (SEC).
The notice serves as a warning that the regulatory body may take enforcement action against the exchange after conducting a brief investigation into undisclosed digital assets listed on Coinbase and its staking services.
Despite this development, Coinbase’s products and services will continue to operate as usual, and the company maintains that the SEC has provided little information on the potential violations of securities laws. Coinbase has repeatedly asked the SEC to clarify which assets on its platform may be considered securities, but the regulator has declined to provide feedback.
Coinbase asserts that it does not list securities on its platform and has a rigorous process for analyzing and reviewing each digital asset before listing it. The company claims that it has rejected hundreds of assets that failed to meet its strict criteria, and over 90% of assets reviewed by Coinbase are not listed.
Coinbase remains confident in its business practices and urges regulators to establish clear rules and registration paths for the industry. The exchange warns that threatening enforcement actions against compliant actors will drive innovation and jobs overseas.
The US crypto regulatory landscape remains uncertain, and Coinbase is prepared to engage in a legal process to demonstrate the SEC’s unfair and unreasonable approach to digital assets. The exchange reiterates that it does not list securities on its platform and is confident in the legality of its assets and services.
