• Coinbase may face a lengthy court battle with the SEC due to the lack of regulatory clarity in the US.
• CEO Brian Armstrong has expressed disappointment with the SEC’s lack of guidance and revealed that Coinbase may consider relocating from the US.
• Armstrong has stated that they need to go to court in order to gain clarity and create case law.
Coinbase Facing Potential Court Battle with SEC
Coinbase, a United States cryptocurrency exchange, is potentially facing a long-term legal battle with the Securities and Exchange Commission (SEC). The regulator had sent a Wells notice which usually indicates a potential enforcement action against Coinbase on March 22nd.
CEO Disappointed with Regulatory Clarity
In response, CEO Brian Armstrong expressed disappointment over not receiving any feedback from the SEC regarding what could be done better or differently for their company. He also criticized them for failing to provide industry specific rules for companies operating in crypto markets. As a result, Coinbase may be considering relocating from the US due to this lack of clarity.
Coinbase Prepared for Lengthy Legal Battle
Armstrong mentioned that litigation is not preferable but his company is prepared for an extended court battle if needed in order to gain more understanding and create case law around their situation. He also added that they are currently researching other markets such as the UK which has been attempting to become a crypto hub.
SEC Accused of Abdicating Responsibility
Armstrong accused the SEC of abdicating responsibility by providing insufficient guidance to companies operating within crypto markets, thus making it difficult for them to understand their obligations under securities laws. This is what prompted him to suggest that they might have no choice but take their case through legal proceedings in order to get answers they require.
Conclusion
Overall, it appears that Coinbase will have no choice but resorting into court proceedings in order for them receive answers about their alleged violations from the Securities and Exchange Commission (SEC). The company is already preparing itself for this possibility while considering moving out of US due its lack of regulatory clarity within its borders .