Coinbase, SEC on Collision Course for ‘Existential’ Clash over Crypto Industry – Reuters 3/24/23


Coinbase (COIN.O) debuted on the US stock market on April 14, 2021 – the same day US senators confirmed Gary Gensler to lead the Securities and Exchange Commission (SEC), the country’s top markets regulator.

Gensler, who has called the crypto sector a “Wild West” riddled with fraud, is now embroiled in a battle with the world’s largest publicly-traded crypto firm over a core debate: whether digital assets are investment contracts akin to stocks or bonds that should be regulated by the SEC.

Friction between crypto proponents and the regulator have been brewing under Gensler’s leadership, with both sides growing increasingly loud in their criticisms.

The escalating tension exploded into public view on Wednesday when Coinbase CEO Brian Armstrong and the company’s chief legal officer Paul Grewal posted online that the firm had been told that SEC staff intend to recommend enforcement action, adding that Coinbase was willing to fight it in court….

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