Crypto exchange Coinbase COIN is preparing for a lengthy court battle with the Securities and Exchange Commission, or SEC, following a warning of potential violations of securities law, according to the company’s CEO.
What Happened: Last month, the SEC issued a Wells notice to Coinbase, marking a potential step prior to the regulator issuing charges.
In a Tuesday interview with CNBC, Coinbase CEO Brian Armstrong called the notice “unfortunate” and said that the company has not received any specific feedback from the SEC on the issues involved.
Coinbase has reportedly met with the SEC over 30 times in the past year, without receiving any suggestions for improvement. Armstrong said that the company may have to go to court to “get the clarity we need and create the case law.”
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Armstrong, noted that the company is “absolutely” ready for the legal fight, saying that the SEC’s job is to create a clear rulebook for the market to flourish but “they’ve completely abdicated responsibility.”
"We never seek litigation but it seems in this case they have initiated it and if we need to go to the courts to get the clarity that we need then we are very prepared to do that," he added.
Meanwhile, on Tuesday, Armstrong spoke at a fintech event in London. He said the U.S. "has the potential to be an important market in crypto" but right now is not delivering regulatory clarity. If this goes on, he said, then Coinbase would consider options of investing more abroad, including relocating from the U.S. to elsewhere."
Read More: Bitcoin, Ethereum, Dogecoin Rise As Investor Confidence Grows: Analyst Predicts DOGE Pump To $0.28-Mark
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