Marc Fagel shared with subscribers speculation as to why the SEC has yet to take action against the largest U.S. cryptocurrency exchange.
In March, the agency notified the trading floor that it could sue it for violating federal securities laws.
Coinbase management rejected the SEC’s arguments, saying it was not in the business of selling securities.
Many expected that two months after the filing of the notice the SEC would still sue the exchange, but that did not happen.
“By the way.. Where is the SEC lawsuit against Coinbase that everyone has been talking about so much?
The SEC sent a notice to the exchange over two months ago, and nothing has happened. A lot of noise out of nothing,” said the crypto-enthusiast in social networks Mr.. Huber.
Fagel replied: that there was nothing unusual about it.. The former official explained that after a warning of possible enforcement action, it usually takes the agency 30 to 60 days.
It may take longer if there is a settlement negotiation. The former SEC lawyer noted that the agency may wait for the outcome of the lawsuit against Ripple before taking action against Coinbase.
Ripple CEO Brad Garlinghouse expects a judge to issue a ruling in the coming weeks.
Cryptocurrency exchange Gemini recently asked the court to dismiss the SEC’s lawsuit seeking a permanent injunction against Gemini Earn program.
Gemini executives believe the regulator’s complaint only interferes with the return of funds to program participants.