The agency issued a Wells Notice alleging securities law violations. Coinbase says it will go to court.
Highlights
- Bitcoin-crypt exchange firm says it has received a Wells Notice from the Securities and Exchange Commission.
- The notice is a document used by the SEC to inform firms they are facing imminent legal action.
- A source close to the firm says the notice was likely tied to its recent declaration that it was exploring expanding off-shore operations in response to U.S.
- regulatory pressure, and the company sensed the agency had acted “in retaliation” The notice also alleged the firm had listed digital assets that could be viewed as unlicensed securities, but did not specify what those assets might be.
- CEO Brian Armstrong has long been a vocal critic of the SEC over what in the crypto industry view as a failure to provide clear guidance on rules governing digital assets.
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Coinbase Receives ‘Wells Notice’ from the US SEC