Coinbase CEO on its Wells Notice: SEC is like soccer referees in a game of pickleball
Brian Armstrong, the CEO and co-founder of crypto exchange Coinbase has compared the Securities and Exchange Commission (SEC) to “soccer refs” in a game of pickleball, criticizing U.S. regulators for not being able to “agree on the rules” of “this new game.”
The comments came after Armstrong revealed that his firm had been issued a Wells Notice on March 22 — which he had noted “typically precedes an enforcement action."
1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
The Coinbase CEO has been critical about the seeming lack of clarity from United States regulators around crypto regulation. There has also been an ongoing debate on who should be the primary body regulating crypto.
Asked to explain the most recent development “in NFL terms,” Armstrong quipped:
The reference to a “call they made back in April 2021” refers to the SEC's approval of Coinbase’s application to go public in 2021. Armstrong argued that the SEC that its filings “clearly explained” its asset listing process and “included 57 references to staking.”
In a separate tweet, Coinbase Chief Legal Officer Paul Grewal claimed the SEC provided “no clear rule book” on crypto regulations and that “efforts to engage with the SEC are met with silence or enforcement actions."
The truth is that today there is no clear rule book from the SEC on crypto, and efforts to engage with the SEC are met with silence or enforcement actions. They have not followed a good faith rulemaking process with industry, as required under the APA. 10/15
Both executives appear to welcome the chance to use the “legal process” to provide the crypto industry with regulatory clarity.
“We are proud to
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