Regulator officials emphasize that Coinbase management is relying in its statements on the SEC’s approval of the exchange’s initial public offering application, as if that exempts it from complying with the laws.
“Coinbase, a multibillion-dollar company with experienced lawyers, claims ignorance that its actions could violate federal securities laws. The company’s management assumes that once the application is approved in 2021, the SEC has confirmed the legality of Coinbase s core business activities at all times. That is, Coinbase accepted this approval as the basis for its listing decisions,” the SEC lawyers wrote to Judge Katherine Polk Failla.
The SEC recently recognized the cryptocurrency DASH as a security. This coin was previously added to the Coinbase Pro platform.
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