Coinbase Says it Will Continue to Operate its Business as Usual
Hours after the US Securities and Exchange Commission (SEC) sued Coinbase for alleged securities law violations, Chief Legal Officer Paul Grewal testified before a House of Representatives committee to discuss the creation of a new framework for digital asset markets.
Expressing his disappointment but not surprise at the legal action, Grewal declared that legislation, not litigation, was the solution to fair and equal regulation of the digital asset sector.
Despite the complaint, Grewal assured that Coinbase would conduct business as usual. The complaint stems from Coinbase’s listing of unregistered securities and offering of its staking program.
The SEC references the 2017 report on the original Decentralized Autonomous Organization, which suggested that digital assets may meet the definition of a security investment under US law, and that registration and disclosures would be necessary.
It also noted that prior to the report’s issuance, Coinbase already held the same position.
