Coinbase may face years-long court battle with SEC, CEO warns: Report

United States cryptocurrency speech Coinbase is gearing up for a lengthy ineligible conflict with the Securities and Exchange Commission (SEC) aft the regulator warned the institution of imaginable securities instrumentality violations, CEO Brian Armstrong told CNBC successful an interrogation connected April 18.

Coinbase received a Wells announcement from the U.S. SEC on March 22, indicating a imaginable enforcement action. The announcement is usually the past measurement earlier the regulator files charges. In response, Armstrong expressed disappointment and revealed that the institution had not received immoderate wide details from the SEC astir the alleged violations. He told CNBC:

“We’ve met with them implicit 30 times successful the past twelvemonth … ne'er got a azygous portion of feedback from them astir what we tin beryllium doing amended oregon differently, and past this Wells Notice arrived. I deliberation we’re going to person to really extremity up going to tribunal to get the clarity we request and make the lawsuit law.”

Armstrong said his institution is prepared for a lengthy conflict with the SEC, if necessary. Armstrong explained to CNBC that portion litigation is not a preferred outcome, Coinbase whitethorn request to spell to tribunal to summation the clarity it requires. The CEO besides criticized the SEC's deficiency of clarity for companies successful the crypto industry, accusing the regulator of an "abdication of responsibility" and failing to people a wide rulebook for the market. 

During a fintech lawsuit successful London connected April 18, Armstrong revealed that Coinbase mightiness see relocating from the U.S. owed to the deficiency of regulatory clarity. He mentioned that the institution is presently looking astatine different markets, with the United Kingdom being a precedence due to its efforts to presumption itself arsenic a crypto hub.

Related: Coinbase CEO calls for enactment successful electing pro-crypto lawmakers pursuing SEC Wells notice

On April 17, the SEC charged crypto plus trading level Bittrex and its cofounder and erstwhile CEO William Shihara for operating an unregistered nationalist securities exchange, broker, and clearing agency. The regulator besides filed a abstracted complaint against Bittrex Global.

The SEC's erstwhile main of the Office of Internet Enforcement, John Reed Stark, shared connected Twitter that successful airy of the SEC's caller charges against Bittrex, helium believes "Coinbase is next." 

The SEC has present charged crypto plus trading platforms Beaxy and Bittrex for operating an unregistered nationalist securities exchange, broker, and clearing agency. IMHO, Coinbase is next. Don’t sprout the messenger.https://t.co/RI8Vih2t8S pic.twitter.com/OSL3hLLRkR

— John Reed Stark (@JohnReedStark) April 17, 2023