Coinbase receives a Wells notice from the U.S. SEC

coinbase receives wells notice from sec
  • U.S. SEC issued a Wells notice to Coinbase on Wednesday.
  • Coinbase chief legal officer Paul Grewal’s remarks in response.
  • Coinbase stock slipped more than 10% in extended hours.

Coinbase Global Inc (NASDAQ: COIN) is trading over 10% down in extended hours after receiving a “Wells notice” from the SEC for potentially violating U.S. securities laws.

Here’s what we know so far

Remember that such a notice often signals the agency’s intent to formally press charges.

Still, Coinbase says the Wells notice does not provide enough information on potential violations and so it will stick to regular operations for now.

The company believes these potential enforcement actions would relate to aspects of the Company’s spot market, staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.

Last month, the Securities and Exchange Commission had issued a similar notice to Paxos (blockchain infrastructure platform) as well.

Chief legal officer Grewal’s remarks

The news arrives about a month after Coinbase reported its financial results for the fourth quarter that topped Street estimates.

On Wednesday, its Chief Legal Officer Paul Grewal reiterated that the company does not list securities. Speaking with CNBC, he also said:

If needed, we welcome a legal process to provide clarity we’ve been advocating for and to demonstrate that SEC simply has not been fair when it comes to its engagement on digital assets.

Grewal also maintained that Coinbase Earn is significantly different from staking services by Kraken that the SEC banned last month. Coinbase stock is still up 100% for the year at writing.

All Dutch and English crypto news!

Canadian authorities move to seize assets tied to QuadrigaCX CEO

According to the order, the assets allegedly are the proceeds of criminal activities linked to Michael Patryn, a co-founder of Quadriga Coin Exchange, and Gerald...

$0DOG prediction: Bitcoin Dogs sets a new tone amid robust use cases and BTC link

Bitcoin Dogs token is set for listing as post-listing speculation gains mount. Investors have been attracted by Bitcoin Dogs as the first ICO on the Bitcoin...

Elon Musk offers free premium features on X, crypto scammers included

Elon Musk rolled out the paid verification model on X, earlier known as “Twitter Blue,” to fight the scammers and spammers thriving on the platform...

Bitcoin zorgt voor ‘snelst groeiende ETF aller tijden’

Larry Fink noemt Bitcoin ETF IBIT de snelst groeiende ETF aller tijden. Dat zijn mooie woorden, van de directeur van Blackrock, het fonds dat IBIT...

Beste exchanges

Koop je crypto bij Bitvavo