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Coinbase CEO Brian Armstrong Asserts Confidence in Face of SEC Lawsuit

Coinbase CEO Brian Armstrong Asserts Confidence in Face of SEC Lawsuit

Brian Armstrong claims the company is "confident in our facts and the law."

Brian Armstrong, the CEO of cryptocurrency exchange Coinbase, has publicly expressed confidence in the firm's operations, affirming belief in their legal standing and welcoming the opportunity to seek clarity on cryptocurrency regulations in court.

The move from Coinbase's CEO comes in light of the US Securities and Exchange Commission's lawsuit, filed on June 6th.

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In its lawsuit, SEC alleges that Coinbase has been functioning as a securities exchange, a broker-dealer, and a clearinghouse without the necessary registration. On top of that, the SEC argues that 13 different cryptocurrencies retailed by Coinbase - including but not limited to Polygon (MATIC), Solana (SOL), Cardano (ADA), and Filecoin (FIL) - fit the securities' definition.

In a public response via Twitter, Armstrong outlined the lawsuit's distinct nature, as its focal point lies in defining what constitutes security. Therefore, he believes that it allows his team to be "confident in our facts and the law."

Armstrong further highlighted that even the US government lacks a consensus on which cryptocurrencies should be classified as securities, given the conflicting statements issued by the SEC and the Commodity Futures Trading Commission (CFTC). 

With optimism, Armstrong shared his hopes that these legal proceedings would pave the way toward much-needed clarity on compliance with securities laws for crypto exchanges. He also acknowledged the commendable efforts by the US Congress to enact cryptocurrency legislation, deeming it a necessary step to rectify the current ambiguous situation.

The fight between Coinbase and the SEC began in March. On March 22nd, Coinbase received a Wells Notice from the SEC, which suggested possible enforcement actions against the firm.

In April, Coinbase's legal representatives argued that the SEC's proposed enforcement lacked legal support and exceeded the commission's authority

In a proactive move, Coinbase's legal department filed a lawsuit against the SEC on April 25th, alleging that the regulator failed to timely outline clear rules for cryptocurrency exchanges, particularly those distinguishing between securities and non-securities cryptocurrencies. 

The SEC sought to dismiss these allegations on May 15th, to which Coinbase submitted a mandamus reply on May 23rd.

As Armstrong stands firm in the face of the SEC's lawsuit, the ensuing legal battles may pave the way for much-needed clarity within the realm of cryptocurrency regulations.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.



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