Gurbir S. Grewal, the director of the SEC’s Division of Enforcement, emphasized that ignoring rules has significant consequences for the investing public. He stated, “Coinbase was fully aware of the applicability of the federal securities laws to its business activities, but deliberately refused to follow them. While Coinbase’s calculated decisions may have allowed it to earn billions, it’s done so at the expense of investors by depriving them of the protections to which they are entitled.”
The SEC’s complaint comes after an investigation into Coinbase last July regarding the potential illegal sale of unregistered securities. On the same day, Coinbase’s chief legal officer, Paul Grewal, was scheduled to testify before a congressional committee on a new draft bill related to crypto regulations. Coinbase previously received a notice from the SEC in March, indicating potential securities law violations but without providing detailed information. The company claims to have submitted multiple registration proposals to the SEC, all of which were ultimately unanswered.
