SEC Wells Notice To Coinbase
• The U.S. Securities and Exchanges Commission (SEC) has sent a Wells Notice to Coinbase for alleged unregistered securities offerings.
• Coinbase has complained that the SEC did not provide them with adequate information in the notice or enough room to register their business operations.
• Ripple’s CTO, David Schwartz, has criticized the SEC for not providing clear guidelines before attacking crypto firms.
Coinbase Challenges SEC
Coinbase recently received a Wells Notice from the SEC alleging its staking services offer unregistered securities. Through its chief legal officer, Paul Grewal, Coinbase has called out the regulator to provide reasonable rules for crypto, noting that they are willing to follow such regulations if provided. Grewal believes enforcement actions are not enough to define crypto regulations and legislation is needed instead.
Ripple Responds To Coinbase
Ripple’s CTO, David Schwartz, responded to Paul Grewal’s statement by criticizing the US Securities and Exchanges Commission for not clarifying cryptocurrency regulatory guidelines before attacking crypto firms. Ripple’s Chief Legal Officer Stuart Alderoty also released a comment via tweet suggesting that they might be throwing in weight for Coinbase against the SEC allegations.
Ripple XRP Price Drop
The controversy surrounding this case continues to escalate, but it appears unaffected on Ripple XRP’s price as it plunged by 4% on the chart l XRPUSDT on Binance today.
It remains uncertain what action will be taken by either side in this ongoing saga between Coinbase and the SEC over their staking services offering unregistered securities or when clear cryptocurrency regulations will be provided by US regulators in order to protect investors and businesses alike who operate within this space.