Coinbase Global has reiterated its view to the US Securities and Exchange Commission that it has not broken any securities laws, the firm said on Thursday in a formal response to the legal threat it received from the regulator.
coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal said crypto The exchange would like to list the securities in the future but does not feel comfortable given the regulatory uncertainty, said a video response to the SEC made public on Thursday.
“Coinbase does not list securities,” Grewal said.
Last month, Coinbase said the SEC sent a Wells notice – a formal announcement the regulator’s staff wants to recommend an enforcement action.
The incident is one of the latest signs of growing tension between the crypto sector and the SEC, which has taken the position that many digital assets are securities and illegally operating outside its oversight. The SEC is increasingly trying to take into consideration the lack of compliance among crypto firm intermediaries.
“No law or regulation authorizes the SEC to charge Coinbase for the violations alleged in the Wells notice,” Grewal said. “We are on the verge of a battle that doesn’t need to happen, and clearly shouldn’t.”
Earlier this week, Coinbase appealed to a federal court to compel the SEC to say whether it will create new rules for digital assets, Coinbase filed a petition last year to make such a rule.
Coinbase Deputy General Manager Catherine Minarik said in an interview that the company will focus on growing outside the US as needed.
“We will leave no stone unturned to push for regulatory clarity here,” Minarik said.
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