Coinbase’s Lawyer Addresses SEC’s Wells Notice a ‘Massive Overreach’
- In the interview, Grewal stated that none of Coinbase’s queries were answered by the SEC over the last nine months.
- Grewal added that the SEC prefers court fights rather than conversations.
The crypto journalist and podcaster, Laura Shin, updated her official Twitter page with the interview of Paul Grewal, the top lawyer of the leading crypto exchange Coinbase, in which he addressed the Securities and Exchange Commission’s (SEC) Wells Notice against the company a “Massive Overreach”.
On March 24, the podcast channel Unchained, released its latest video, an interview with Coinbase’s lawyer, highlighting his concerns over the SEC’s recent “warning that it would pursue legal action against the crypto exchange”.
Significantly, the lawyer stated that when Coinbase received the SEC’s Wells Notice, though the company was disappointed, it was never surprised; for many years the company has been trying to “get reasonable rules to operate rating in plain sight and the commission is simply chosen or refused to engage with us [Coinbase]”.
Notably, Shin shared a thread commenting that Grewal has been complaining about the SEC’s current stance, the preference for “court fights” rather than “conversations”:
In addition, the podcaster stated that the lawyer revealed the condition of the company over the past nine months, while Coinbase was “given essentially no response” to the major queries, by the SEC during their official meet-ups.
During the interview, Grewal pointed out that both in private conversations and public meetings, the SEC had been reluctant to give adequate explanations. He stated:
We filed a petition for formal rulemaking which is a public request that the SEC issue rules. And in that petition, we laid out something like 50 or more questions that we think need to be answered in order for any crypto framework to make sense. Again we were given essentially no response.
Furthermore, Coinbase’s lawyer elaborated on the SEC’s refusal to provide adequate information on any of the necessities that the company asked for. The basic doubts related to the unique blockchain technologies that should be accommodated by the exchange hasn’t been answered by the SEC.