Coinbase May Not Be The Only Exchange To Receive SEC Wells Notice

  • Some netizens theorize that the SEC is making room for Nasdaq’s upcoming cryptocurrency exchange.
  • Meanwhile, CEO urges Twitter netizens to report an account spreading false news about collapsing.

CryptoLaw Founder John E Deaton claimed that Coinbase is likely not the only exchange to receive a Wells Notice from the SEC. Deaton shared this insight after quoting a tweet that may be in danger of collapse in the United States after being investigated by U.S. Government agencies.

Netizens from the cryptocurrency community replied to Deaton’s tweet with their own theories. One such theory was that the SEC taking down cryptocurrency exchanges was a ploy by the government to push Nasdaq’s upcoming cryptocurrency exchange.

In particular, Nasdaq has stated that it intends to launch its crypto custody services by the end of the second quarter of 2023. Nasdaq announced its intentions as early as September 2022, in response to institutional crypto investors’ demand.

Meanwhile, others believe Coinbase was simply non-compliant with the SEC all along, thus the Wells Notice. Yesterday, Deaton shared this insight as he quoted a tweet stating that was under investigation by U.S. Government agencies.

Notably, CEO Kris Marszalek declared the news as untrue. Marszalek even urged people to report the account for spreading misinformation. As a result, over 300 users interacted with his tweet and stated their compliance.

On March 23, 2023, Coinbase revealed that it had received a Wells Notice from the SEC despite being compliant with them for years. In detail, a Wells Notice is the SEC’s final communication to a company or individual before taking enforcement action.

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