Coinbase CEO Brian Armstrong has publicly responded to the United States Securities and Exchange Commission (SEC) lawsuit against his company, stating in a tweet that the team "trusts our facts and the law" and welcomes the opportunity to "finally get some clarity on crypto rules" in court.
Regarding the SEC's complaint against us today, we are proud to represent the industry in court to finally get some clarity on crypto rules.
Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no way to "come in and...—Brian Armstrong️ (@brian_armstrong) June 6, 2023
The second filed a lawsuit against cryptocurrency exchange Coinbase on June 6, alleging that the company has been operating a stock exchange, brokerage house and clearinghouse without registering with the commission. In his presentation, he argued that 13 different cryptocurrencies sold by Coinbase fit the definition of securities, including Cardano (ADA), Solana (SUN), polygon (MATIC), Filecoin (FIL) and others.
In his Twitter response, Armstrong claimed that the lawsuit against Coinbase is "very different from others" in that it is "solely focused on what is or is not a security." This makes the team "trust our facts and the law." He claimed that the US government can't even agree with itself on which cryptocurrencies are securities, as "the SEC and CFTC [Commodity Futures Trading Commission] They have made contradictory statements.”
Armstrong expressed hope that the court proceedings will allow cryptocurrency exchanges to "finally" get clarity on how to comply with securities laws. He also praised recent attempts by Congress to pass crypto legislation, stating that "this is why the US Congress is introducing new legislation to fix the situation."
Related: Coinbase Targeted by State Security Regulators Concurrent with SEC Lawsuit
Armstrong's response is the latest in a series of legal filings and public statements between the exchange and the SEC since March.
coin base received a notice from Wells from the SEC on March 22 indicating that the regulator can take enforcement action. In response, the exchange issued a statement from his legal team on April 19 stating that the potential SEC enforcement was not "supported by law or within the limits of the Commission's authority."
A notice from Wells does not start a legal process. It only serves to notify a company of a possible lawsuit.
On April 25, Coinbase's legal team went on the offensive by presentation of preventive claim against the securities regulator. In the lawsuit, he alleged that the SEC failed to provide clear rules for cryptocurrency exchanges in a timely manner, including rules that distinguish between cryptocurrencies that are and are not securities. The SEC responded by arguing for dismissal on May 5, and Coinbase filed a mandamus response in support of his lawsuit against the SEC on May 23.
Because Coinbase filed its lawsuit against the SEC on April 25 and the SEC filed a lawsuit against Coinbase on June 6, both organizations are now involved in two separate legal proceedings against each other.
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