Coinbase executives addressed the company’s regulatory issues in a video released on YouTube and at Consensus 2023. The appeal was made in response to a Wells notice received from the United States Securities and Exchange Commission (SEC), which warned of potential enforcement actions against the firm. Chief legal officer Paul Grewal, who spoke at the conference, argued that Coinbase’s commitment to regulatory compliance has remained steadfast since it was approved for listing on the Nasdaq stock exchange two years ago. Grewal also mentioned that the SEC’s stance has changed since then, attributing it to FTX. Coinbase is already regulated and has a New York state “BitLicense” that prohibits it from listing securities. Grewal argued that legislation or rulemaking is necessary if the SEC wants to expand its oversight over the industry.
Coinbase CEO Brian Armstrong stated that the company is prepared to defend its position in court, but is open to dialog about a workable path forward for the industry. Coinbase received the Wells notice on March 22.
