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.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is a Cryptocurrency: For Beginners (Animated Explainer)
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.
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.