Coinbase, the San Francisco-based cryptocurrency exchange led by Brian Armstrong, finds itself in the midst of a regulatory storm with the U.S. Securities and Exchange Commission (SEC). Despite numerous attempts to seek clarity from regulators through countless meetings, Coinbase continues to face allegations of operating an unlicensed securities exchange.
Despite 30 meetings with the SEC in the past 18 months, Coinbase has not received significant feedback regarding the legal status of various crypto assets listed on its platform. The Wells Notice issued by the SEC in March turned into allegations against Coinbase for operating an unlicensed securities exchange in June.
The SEC’s classification of assets like Solana, Polygon, and Cardano as unregistered securities has sparked a legal battle vehemently denied by Coinbase. Amidst regulatory uncertainties, Coinbase is exploring international avenues to smoothly conduct its operations.
Armstrong highlights the difference in approach between the SEC and the UK’s Financial Conduct Authority (FCA). He emphasizes that the UK provides a single regulation for both commodities and securities, creating a more seamless regulatory environment in the country.
Compared to the US, the UK has adopted a crypto-friendly attitude under Prime Minister Rishi Sunak. Coinbase highlights receiving positive responses from UK authorities who support a crypto and Web3-friendly environment.