SEC Sends Wells Notice to Coinbase

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Coinbase General Counsel Paul Grewal has announced in a blog post that the Wells notification they received from the SEC does not constitute a formal accusation or initiation of a lawsuit, though it is possible if the claims of a violation of securities laws are not resolved.

The company’s shares ended the trading day on March 22 with a fall of 8.16%, and post-market quotes of securities fell by 12.9%.

Grewal has expressed his complaint that the letter does not provide detailed information that could be responded to. However, he reassured that Coinbase will continue to work as usual.

He has further asserted that they are confident that the assets and products being traded comply with the law, and they are ready to proceed with litigation in order to ensure regulatory clarity and to prove the SEC’s unfair position on digital assets.