US Sec threats to sue Crypto Exchange Coinbase, CEO Brian Armstrong replies - regulation Bitcoin News
US Sec threats to sue Crypto Exchange Coinbase, CEO Brian Armstrong replies - regulation Bitcoin News
The US stock exchange supervision Sec has threatened to sue the cryptocurrency exchange Coinbase noted on the Nasdaq because of its credit product. The stock exchange says: "We don't know why ... we have no explanation from the Sec."
Coinbase threatened by SEC
In a blog post entitled "The SEC has informed us that it wants to sue us because of Lend. We don't know why," said Coinbase that "it has been proactively in contact with the SEC via Lend for almost six months", so that the message came surprisingly. The company described that the lend product "enables justified customers to earn interest on selected assets on coin base, starting with 4% APY on USD". Coin (USDC). “
The crypto exchange noted on the Nasdaq in detail:
The SEC informed us that she considered Lend as security, but did not want to say why or how she came to this conclusion ... In June we opened our lend program publicly and opened a waiting list, but did not set any public start date. But here, too, we didn't get a explanation from the SEC. Instead, they initiated a formal examination.
The SEC Bat Coinbase for various documents that the company "voluntarily" made available. However, the supervisory authority "also asked for the name and contact details of each individual person on our Lend-Wartliste", whose provision Coinbase claimed to have not approved.
Coinbase noted: "The SEC has repeatedly asked our industry to 'speak, to come in'. We did that here. But today we only know that we can either stay away from the market for an indefinite time without knowing why or we can be sued ... The result is that we will bring on the market at the earliest in October."
Coinbase CEO Brian Armstrong went to Twitter early Wednesday morning to share his thoughts and to clarify the situation with the Sec.
"Recently there was a really incomplete behavior from the Sec," he began, adding:
Supposedly the goal of the SEC is to protect investors and create fair markets. Who do you protect here and where is the damage? People seem to be pretty happy to achieve returns with these different products, with many other crypto companies.
"To drain this would probably harm consumers than to protect them, and by preventing coin base from starting the same thing that other companies already have live, they create an unfair market," he argued.
Armstrong said: "If we end up in court, we may finally get the regulatory clarity that the SEC refuses. But regulation through legal disputes should be the last resort for the Sec, not the first."
Shark tank star and owner of the NBA team Dallas Maverick, Mark Cuban, commented on this topic. He said to Armstrong: "Brian, that is' Regulation Court proceedings .
What do you think of the measures of the SEC against coinbase? Let us know in the comment area below.
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