Exchange giant Coinbase was issued a Wells Notice by the Securities and Exchange Commission, notifying the company of investigations into several offerings and continuing a string of regulatory warning shots fired at crypto firms in the U.S.
“We are prepared for this disappointing outcome and confident in the legality of our assets and services. If needed, we welcome a legal process to provide the clarity we have been advocating for.” — Paul Grewal, Coinbase Chief Legal Officer.
A Wells Notice is a document the regulator issues to entities that are under investigation — it does not necessarily imply a conclusion or foregone action. Coinbase stated that the notice does not provide significant information for a detailed response, noting that the SEC staff provided little more than an identification of potential violations.
The company highlighted that it has met with the SEC more than 30 times in the past nine months alone, but the regulator has remained unresponsive. Coinbase further added that it has rejected more than 90% of assets that apply to be listed on the platform to maintain compliance integrity.