In recent weeks, Coinbase has been requesting clear regulatory guidelines from the SEC to maintain compliance. In response, the SEC has remained silent, leading Coinbase to take legal action. The CEO of Coinbase, Brian Armstrong, has stated that his company is keen to avoid regulatory enforcement and instead, promote cooperation and amicable discussions with regulators. He has also urged the SEC to provide clear guidelines that the company can follow.
SEC Refuses to Provide Clarity
Despite Coinbase’s willingness to negotiate, the SEC remains steadfast in its silence. Gary Gensler, the head of the SEC, has stated that existing regulations are clear and that crypto exchanges are simply refusing to adhere to them. Coinbase has requested a notice-and-comment process to clarify the rules, but the SEC has blocked the request, stating that regulation may take years to set in stone.
Coinbase Remains Firm in its Position
Coinbase has remained firm in its position, stating that they do not list securities. The exchange already takes SEC guidelines regarding securities into account when deciding which tokens to list, leading them to reject about 90% of applications. In response, the SEC has stated that Gensler’s public comments are not to be taken as policy statements, but that they may continue to use enforcement actions until they have smoothed out the edges.
Coinbase is ready to defend itself in court but is open to good faith talks with regulators. While the SEC has caused harm to America with its policy of regulation by enforcement, Coinbase is keen to promote cooperation and clarity in regulation. Despite this, the SEC has refused to provide clarity, leaving Coinbase in a difficult position.