Brian Armstrong admits that litigation is not the desired outcome, however, claims that the company is prepared to fight for necessary clarity in court.
Crypto exchange Coinbase CEO Brian Armstrong foresees a lengthy courtroom face-off with the US Securities and Exchange Commission (SEC).
According to a recent CNBC interview published on April 18th, the CEO expressed frustration with the regulator's lack of clarity. In the interview, Armstrong pointed out that Coinbase has not received any specific information about the alleged violations.
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It is worth noting that the United States-based crypto exchange received SEC's Wells Notice on March 22nd. The notice is usually issued as a heads-up to the companies that the securities regulator is looking to start enforcement actions against the firm.
Despite the company's numerous meetings with the SEC, Armstrong claims Coinbase hasn't received any meaningful guidance. Armstrong shared his disappointment with CNBC, stating:
We’ve met with them over 30 times in the last year. <…> <We> never got a single piece of feedback from them about what we can be doing better or differently, and then this Wells notice arrived. I think we’re going to have to actually end up going to court to get the clarity we need and create the case law.
Armstrong admitted that while litigation is not the desired outcome, Coinbase may have no choice but to seek legal resolution in order to gain the necessary clarity.
Moreover, Armstrong took issue with the SEC's treatment of the cryptocurrency industry, accusing the regulator of "abdication of responsibility" and failure to provide a comprehensible set of rules for the market.
The CEO also raised similar concerns during an April 18th fintech event in London, where he disclosed that Coinbase is considering moving away from the US due to regulatory uncertainty.
Armstrong identified the United Kingdom as a priority market, given its recent efforts to establish itself as a cryptocurrency hub. The news comes shortly after the crypto exchange revealed plans to assist the UK in becoming a strong Web3 hub.
The looming legal battle between Coinbase and the SEC highlights the urgent need for regulatory clarity in the fast-paced world of cryptocurrency.
It is worth noting that Coinbase is not the only crypto firm targeted by SEC. On April 17th, a US securities regulator charged Bittrex and its co-founder for operating an unregistered national securities exchange, broker, and clearing agency.
