is a lack of clarity from the SEC and this is further evidence of that.
Coinbase CEO Brian Armstrong recently did an interview with the Wall Street Journal that shed light on the company’s current relationship with the U.S. Securities and Exchange Commission (SEC). In the interview, Armstrong mentioned that when Coinbase initially planned to become a public company, they submitted business plans which outlined their plans for offering staking services, which the SEC now alleges are securities. Armstrong noted that the SEC could always change their mind, but this was an interesting point nonetheless.
The Coinbase CEO also mentioned that the company had held over 30 meetings with regulators and the SEC, where they were questioned about “everything under the sun”. One would expect that the SEC would be well aware of Coinbase’s business actions and future plans. However, Armstrong revealed that he and his team had gained little feedback from the SEC despite essentially begging for regulatory clarity. It was only until recently that the SEC made its presence known.
Armstrong also mentioned that Coinbase holds a broker-dealer license. This license is necessary for a company who wishes to buy/sell securities for themselves or others. Coinbase applied for and obtained this license in order to legally trade in securities, however Armstrong stated that “there is no way to activate it” with the SEC regulators. This furthers the allegations that the SEC has been lacking in providing regulatory clarity to Coinbase.
The interview with the Wall Street Journal provided insight into Coinbase’s current relationship with the SEC and the struggles that the company is facing with navigating the U.S. regulatory landscape. Coinbase has had to go through the necessary steps to gain a broker-dealer license in order to operate legally, however the SEC has yet to provide regulatory clarity. Armstrong and his team have been begging for more feedback from the SEC for some time, but the response has been radio silence until recently. It is still unclear as to what the outcome of the SEC’s recent actions towards Coinbase will be, but it is certainly an issue that the cryptocurrency industry is keeping a close eye on.