In the ongoing Coinbase versus the United States Securities and Exchange Commission (SEC) feud, the firm’s executives have criticized the regulator consistently. The tweet windows of the top executives at Coinbase have been consistently swamping the regulator following the Wells Notice.
On March 22, the SEC sent a Wells Notice to Coinbase informing them of a possible enforcement action over the “violation of federal securities laws.” The notice was concerning some of the firm’s asset listings, staking services, and Coinbase Wallet. Following the notice, the firm’s shares took a major hit and fell by almost 11.5%.
Brian Armstrong, the CEO of Coinbase, took to Twitter to share his criticism of the regulator and their approach to crypto entities. Now, in a display of unbridled optimism, the CEO tweeted that the company’s morale has improved following the regulator’s notice.
Armstrong’s comments in the recent scenario have left Twitteratis wondering if the CEO has been left out of touch with reality. While the community’s reaction to his morale-boosting tweet has been mostly supportive, some comments were sarcastic and caustic, with many people accusing him of downplaying the regulator’s investigation and acting with pride and arrogance.
Others have also mocked the CEO’s response to the SEC, suggesting that the company should not be building more of a product deemed illegal by the regulator.
Armstrong and his colleagues have been using Twitter as a primary mode of communication with the larger crypto community. In earlier tweets, the CEO had discussed the content of the Wells notice, the company’s legal stance, and its commitment to customers. Paul Grewal, the CLO of Coinbase also said that the firm has adhered to all the regulations and is ready for any legal action if required.
Daniel Seifert, Coinbase’s Vice President and Regional Managing Director in Europe in a blog post emphasized that the U.S. government’s hawkish approach to crypto regulation has “left a vacuum that other countries are eager to fill.”
In the past few days, the SEC has been on an enforcement spree and targeting various firms. After Kraken and Paxos, the regulator targeted Coinbase. This enforcement-driven regulation approach has been criticized by many dignified individuals.
French Hill, a Republican lawmaker, in his DC Blockchain Summit appearance, pointed out that the regulator’s approach can be held responsible for driving crypto businesses away and hence there needs to be a more open approach involving perspectives to ensure efficiency.
Coinbase’s future will depend on its ability to navigate the regulatory landscape, and it remains to be seen whether Armstrong’s public show of confidence will ultimately help or hinder the company. Despite Armstrong’s attempts to rally his team and the crypto community, the ongoing investigation by the SEC remains a significant cause for concern.