Coinbase CEO Brian Armstrong responded to the SEC’s lawsuit towards the alternate on Tuesday, June 6. 

Armstrong mentioned that the SEC reviewed Coinbase’s enterprise in 2021 and “allowed us to grow to be a public firm,” regardless of the 2019 claims within the SEC’s lawsuit. 

“In case it’s not apparent, the Coinbase swimsuit may be very totally different from others on the market – the criticism filed towards us is solely centered on what’s or is just not a safety. And we’re assured in our details and the legislation,” Armstrong tweeted. 

The SEC claimed that Coinbase violated the Alternate Act and Securities Act, particularly focusing on 4 violations. 

With the violations, it specified that “since at the very least 2019, by means of the Coinbase Platform, Coinbase has operated as: an unregistered dealer, together with by soliciting potential buyers, dealing with buyer funds and belongings, and charging transaction-based charges; an unregistered alternate, together with by offering a market that, amongst different issues, brings collectively orders of a number of patrons and sellers of crypto belongings and matches and executes these orders; and an unregistered clearing company, together with by holding its prospects’ belongings in Coinbase-controlled wallets and settling its prospects’ transactions by debiting and crediting the related accounts.”

The securities focused by the regulator embody SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.

Learn extra: SEC Sues Coinbase: Right here’s What They Allege Coinbase Did Flawed

“There isn’t any path to ‘are available in and register’ – we tried, repeatedly – so we don’t checklist securities. We reject the overwhelming majority of belongings we evaluation,” he mentioned.

Armstrong continued, “that is why the US congress is introducing new laws to repair the state of affairs, and the remainder of the world is transferring to place clear guidelines in place to assist this know-how.”

In response to a video, additionally tweeted by Armstrong, Coinbase met with the SEC 30 instances in 2022 to ask for steering. 

The SEC’s lawsuit towards Coinbase comes only a day after the SEC filed a lawsuit towards Binance. It additionally focused the Binance.US Staking Program and claimed that Binance listed securities.


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