Finst

Coinbase gears up for legal battle with the SEC

The Coinbase crypto exchange gears up for a legal battle with the SEC.

By Mike Hesp
• 1 min read
Coinbase gears up for legal battle with the SEC

The crypto exchange Coinbase is gearing up for a legal dispute with the SEC. The SEC had repeatedly warned about violations of securities laws.

The CEO of the Coinbase crypto exchange told CNBC in an interview that the company is preparing for a legal battle with the U.S. Securities and Exchange Commission (SEC). Last month the regulator gave the company a "wells notice". The notice is typically one of the last steps before the regulator formally files an indictment.

"We met with them more than 30 times over the past year and never received any feedback on what we could do better or differently, and then this Wells Notice came," Armstrong said.

The company is also considering investing more overseas due to regulatory pressure. A move from the U.S. to another country is being discussed.

"I think eventually we’ll have to go to court to get the clarity we need to establish the jurisdiction," Armstrong said. SEC chief Gary Gensler meanwhile defended his crypto guidelines before the House Finance Committee.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.