Cryptocurrency exchange Coinbase has come under the scrutiny of the US Securities and Exchange Commission (SEC). On Wednesday, the company announced that it had received a warning from the regulator highlighting potential violations of securities laws. If the violations continue, the warning may turn into formal charges.
Coinbase stated that it had asked the SEC to clarify which assets on its platform could be considered securities, but the request was rejected. The company's blog noted that it had requested reasonable cryptocurrency trading rules for Americans, but instead received legal threats.
Coinbase emphasized that its products and services continue to operate as normal and that the news does not require any changes to its current offerings. However, if the SEC were to file a lawsuit, the cryptocurrency exchange could face both fines and restrictions on its operations in the US. The company must provide counter-arguments to the SEC by April 5.
Coinbase's Chief Legal Officer, Paul Grewal, stated that the company is ready to go to court to prove the "unfairness" of the regulator's position on digital assets. According to the Financial Times, a possible lawsuit could have serious consequences for the exchange's operations in the US.