It’s a do-or-die situation for Coinbase: SEC vs Coinbase
Experts noted that Coinbase is currently under a very tough situation over BinanceUS, amid legal hurdles with the country’s securities regulatory body.
Coinbase is a Nasdaq-listed publicly traded crypto exchange. The services of this platform are popular in the US, as the exchange follows almost every type of measure to remain in full compliance with the corresponding regulatory bodies.
Following the United States Securities and Exchange Commission (SEC)’s lawsuit against the Coinbase exchange, the majority of the experts shared their opinion over the next possible moves by this tensioned crypto firm.
Following SEC’s suit on 6 June, the Coinbase exchange CEO Brian Armstrong confirmed that he is confident with his team to resolve the case on behalf of facts & rules.
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.
— Brian Armstrong
Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and…(@brian_armstrong) June 6, 2023
Many experts noted that Coinbase exchange’s crypto empire covers huge numbers of jurisdictions but the company generates 80% revenue from US customers (institutional & retail). So here Coinbase has no path to get out of the US.
In this situation, Coinbase has only one option which is to defend in court on behalf of rules & laws.
Few experts also claimed that Coinbase may get out of this federal charges, as it is a American crypto exchange and also reportedly the SEC chairman Gary Gensler targeted BinanceUS more dominantly over Coinbase, in his speech.
XRP lawsuit, Wells notice, & Coinbase
In Dec 2020, the SEC body sued San Francisco headquartered blockchain firm Ripple over the nature of its business with the XRP coin. The SEC body alleged that XRP was a security token & Ripple violated securities laws.
After the XRP Lawsuit, Ripple defense lawyers raised a very big question against the SEC body & asked why the SEC body green signalled the Coinbase exchange to go public, while the exchange was providing XRP token trading.
In March of this year, the SEC sent a Wells notice to the Coinbase exchange over unregistered securities offerings & crypto staking. At the time Coinbase confirmed that Wells notice was useless for it, as SEC failed to provide clarity despite the Coinbase team’s approached several times to know the rules.
In the latest SEC suit, the SEC body mentioned that it took a huge time to collect evidence & facts, so it took a huge time for the SEC to initiate charges against such crypto exchanges.
Read also: CFTC chairman confirms his agency will not regulate crypto via an enforced approach
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