Coinbase, a leading cryptocurrency exchange, recently submitted a Wells response to the Securities and Exchange Commission (SEC). Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal addressed the SEC in a video, defending their company’s operations and commitment to working with regulators.
The video’s content sheds light on the company’s past and future plans while emphasizing its eagerness to engage in meaningful dialogue with regulators.
Coinbase’s history and founding principles
Brian Armstrong, CEO of Coinbase, began by sharing the company’s founding story, explaining why he decided to base the company in the United States.
Armstrong was inspired by the Bitcoin white paper, believing that the technology could revolutionize the global financial system. Despite suggestions to base the company in Hong Kong or Singapore, he chose to start the business in the US due to its reputation as a financial and technology hub, as well as its respect for the rule of law.
Over the last 11 years, Coinbase has worked proactively with regulators to navigate the complex and often unclear regulations surrounding cryptocurrencies.
Armstrong emphasized the company’s commitment to working within the regulatory framework and seeking clarity on market structure for trading crypto securities.
Working with regulators and responding to the Wells Notice
Paul Grewal, Coinbase’s Chief Legal Officer, stated that the company has been in communication with the SEC for years, discussing its business operations and seeking guidance on how securities laws might apply to Coinbase and the broader industry.
However, Grewal expressed frustration with the lack of response from the SEC.
Armstrong echoed Grewal’s sentiments, stating that while the company is prepared to defend itself in court if necessary, they would prefer to engage in constructive dialogue with the SEC.
He urged the commission to recognize that a Wells notice at this stage is not helpful to the industry and may harm America’s position in the global cryptocurrency market.
Both Armstrong and Grewal expressed their willingness to meet with the SEC at any time to discuss a workable path forward for the industry. They emphasized that true progress could only be achieved through open and honest dialogue between regulators and industry leaders.
Coinbase’s commitment to compliance and industry growth
Despite the challenges posed by the Wells notice, Coinbase remains steadfast in its commitment to working with regulators and ensuring the safety and trustworthiness of the cryptocurrency industry.
Armstrong highlighted the various types of crypto assets, including crypto commodities, stablecoins, and crypto artwork, noting that not all crypto assets are securities.
Coinbase’s goal is to bring the benefits of cryptocurrency technology to billions of people worldwide and to achieve this, they will continue to work in good faith with regulators to establish clear rules for the emerging industry.
Coinbase’s Wells response to the SEC demonstrates the company’s dedication to compliance and its willingness to engage in open dialogue with regulators.
While litigation may be on the horizon, the company says remains hopeful that a constructive conversation can lead to a workable path forward for the cryptocurrency industry.
*You can watch Coinbase’s video below: