Coinbase CEO Brian Armstrong spoke out against the SEC’s decision to file a lawsuit against the exchange.
The SEC’s charges, filed early today, are based on allegations that Coinbase is listing securities without registering with the federal body. It has launched additional actions from Alabama and New Jersey, adding to the growing scrutiny on digital asset platforms.
armstrong react Pointing to the SEC’s allegations on Twitter, the SEC reviewed and allowed Coinbase to become a publicly traded company in 2021, thus quashing the idea that the company was operating without oversight.
Coinbase CEO wrote:
“Instead of publishing a clear rulebook, the SEC has taken an enforcement approach to regulation that is hurting America”
Armstrong noted Coinbase’s efforts to register with the SEC highlighted a lack of clear understanding with the Commodity Futures Trading Commission (CFTC) about what constitutes a crypto security or commodity in the first place. .
“We do not list securities”
The dispute arises amid growing conflict in the US between regulators and companies (or projects or protocols) operating in the industry. The sticking point in the arguments is in the technical definitions of securities and crypto assets, and whether a financial instrument is not invented until the 21st century, subject to early 20th century definitions or terminology.
Armstrong publicly states that Coinbase does not list securities. “We reject most of the assets reviewed,” they wrote, implying that the exchange relied on internal measures to make such a decision in the absence of clear language from the SEC.
These actions against Coinbase come in the wake of the SEC’s decision to sue Binance as well as its CEO Changpeng Zhao on June 5.