Coinbase CEO on its Wells Notice_ SEC is like soccer referees in a game of pickleball

Coinbase CEO on its Wells Notice_ SEC is like soccer referees in a game of pickleball

written by John Murphy | March 23, 2023

Brian Armstrong made an interesting analogy when asked to describe the company’s recent “Wells Notice” in “NFL terms.” 

Brian Armstrong, co-founder, and CEO of crypto exchange Coinbase liken the U.S. Securities and Exchange Commission (SEC) to a “football reference” for the game of pickleball, saying he “doesn’t pay attention to the rules.” accused U.S. regulators of “Done” of “this new game”. 

The comments came after Armstrong revealed that his company was contacted by Wells on March 22nd.

usually precedes enforcement action.” 

Key Takeaways

  • Armstrong believes that the regulatory landscape around cryptocurrency is still evolving. 
  • That the SEC’s stance may shift as they gain a better understanding of the industry.
  • He also raised concerns about the SEC’s lack of clarity around regulations.
  • Which can make it difficult for companies to comply with them.
  • Despite the regulatory challenges faced by the crypto industry.

As per Brian_armstrong Tweet;

Coinbase CEO has criticized US regulators’ apparent ambiguity regarding crypto regulation. There is also ongoing debate as to who will be the primary body regulating cryptocurrencies.

When asked to describe recent developments “in NFL terms,” ​​Armstrong quipped:  

“Imagine having both soccer and football umpires on the field, but we are actually playing pickleball (the fastest-growing new sport in America). We really couldn’t agree on the rules of the new game and decided to change the decision one of them made in April 2021.” 

The reference to “a call they made in April 2021” refers to the SEC’s authorization to publish Coinbase’s filings. Armstrong claimed that the filing “clearly explained” the process of listing assets and “contained 57 of his references to staking.” 

In a separate tweet, Coinbase Chief Legal Officer Paul Grewal said the SEC has not provided a “clear rulebook” on crypto regulation and that “efforts to engage with the SEC face silence or enforcement action.” “There is.” 

According to Paulgrewal’s Tweet;

Both executives seem to welcome the opportunity to use the “legal process” to bring regulation clarity to the crypto industry.

“We are proud to stand up for our customers and the industry at this very moment,” said Armstrong.  

“Going forward, the lawsuit will provide an open and public forum before the Impartial Commission to expose everything the SEC was not fair, reasonable, or even seriously intentional about its commitment to digital. can be “Assets”. 

While other companies, such as Kraken, have reached agreements with the SEC requiring them to stop offering staking services to U.S. customers, Armstrong said Coinbase’s staking service is a necessity, not a security. He has repeatedly maintained that he maintains a position he wishes to defend in court accordingly. 

The cryptocurrency community has heavily criticized the recent filings, with many agreeing that the SEC has reversed its previous position on Coinbase.  

Many have also expressed their support for Coinbase, agreeing that Coinbase will fight on behalf of the entire US crypto industry as an unclear regulatory environment encourages activity abroad. It seems that.