• The U.S. Securities and Exchange Commission (SEC) has issued crypto exchange Coinbase a Wells notice, warning that the crypto exchange may face enforcement action over potential violations of U.S. securities law
• Brett Quick from Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms
• Quick believes that the SEC’s warning to Coinbase may lead to more defined rules for the crypto industry
SEC’s Warning To Coinbase
The U.S. Securities and Exchange Commission (SEC) has issued crypto exchange Coinbase a Wells notice, warning that the crypto exchange may face enforcement action over potential violations of U.S. securities law.
Crypto Industry Reactions
Brett Quick from Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms, as well as suggesting that other jurisdictions around the world are looking at ways to embrace blockchain technology innovation and development while establishing regulatory clarity.
Silver Lining
Quick believes that the SEC’s warning to Coinbase may lead to more defined rules for the crypto industry, establishing case law which will inform how cryptocurrency is regulated and set some rules of the road for compliance in this space moving forward.
Coinbase Response
In response, Coinbase released a blog post stating they had met with SEC monthly from 2019-2020 and were expecting further engagement on certain topics such as staking contracts prior to receiving their Wells Notice. They also mentioned their commitment to helping promote an appropriate regulatory framework in order to benefit customers and stakeholders alike within this space going forward.
Conclusion
In conclusion, it appears that this Wells Notice received by Coinbase may be beneficial in setting some precedent on how regulation should be handled in regards to cryptocurrency companies if further action is taken by regulators in this space moving forward