The SEC filed a lawsuit today alleging that Coinbase has illegally brokered the trading of crypto-asset securities since at least 2019, making it worth billions of dollars.
Coinbase CEO Brian Armstrong posted a statement on Twitter, saying that the company is proud to represent the industry in court to finally get clarity on crypto rules.
He argued that the SEC did not provide clear guidance on what constitutes a security or commodity in the cryptocurrency space, and that the agency had taken a "regulation by sanction" approach that was detrimental to America.
Armstrong listed four points to support his view:
- The SEC scrutinized Coinbase's activities and allowed it to become a public company in 2021.
- There is no way to "go and get a license" to the SEC, Coinbase has tried this multiple times, so it doesn't list the securities. He rejects the vast majority of the assets he examines.
- The SEC and CFTC have made contradictory statements and disagree even on what is a security and a commodity.
- That's why the US congress is passing new laws to remedy the situation, and the rest of the world is moving to set clear rules to support this technology.
Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules.
Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and…— Brian Armstrong 🛡️ (@brian_armstrong) June 6, 2023
Armstrong also said that the Coinbase case is very different from the others, that the complaint against them only focuses on what constitutes a security. He expressed his confidence in the facts and the law.
"We will get this thing done. In the meantime, let's all keep moving forward and developing as an industry. America will eventually do this right," he concluded.
*Not investment advice.
