• The 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 believes that this could lead to clearer rules for digital-asset firms.
• Coinbase has met with the SEC and is working to ensure regulatory compliance going forward.
SEC Warns Coinbase Over Potential Violations
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 Advocate Sees ‘Silver Lining’
Brett Quick from the Crypto Council for Innovation said the upshot could be clearer rules for digital-asset firms, as this development could establish case law and set some rules of the road for crypto to comply with.
Coinbase Working Toward Regulatory Compliance
In response to the Wells Notice, Coinbase released a blog post stating that it has met with the SEC multiple times, and is working to ensure regulatory compliance moving forward.
Potential Impact on Crypto Industry
Quick believes that this development could have profound implications on how cryptocurrency is regulated in general, potentially leading other jurisdictions around the world to embrace innovation in terms of cryptocurrency regulation as well.
Coinbase’s Response
Coinbase stated they are committed to maintaining an ongoing dialogue with regulators and providing transparency into their operations and services in order to uphold their mission of creating an open financial system for everyone around the world.