[NEW] Coinbase prepares for years of legal battle with SEC, hints at withdrawal from the US

Brian Armstrong, CEO of the US cryptocurrency exchange Coinbase, said on the 18th that he is preparing to fight the US Securities and Exchange Commission (SEC) in court for several years.

He said this in an interview with CNBC, and at another event he revealed that he is considering moving Coinbase's base overseas if US cryptocurrency regulations are not clear.

Last month, Coinbase announced that it had received a Wells Notice, which notifies companies and individuals that the SEC plans to take legal action.

At this time, no details have been revealed other than that some services and cryptocurrencies may violate securities laws.

Armstrong said that the Wells Notice was "unfortunate," and expressed his dissatisfaction, saying, "We have had discussions with the SEC over 30 times in the last year. We have never received any feedback from them about what we can do better or differently."

Coinbase has stated that it believes its services are not illegal under current law, and is willing to take the matter to court if necessary to clarify regulations and set precedents.

The SEC recently filed a lawsuit against cryptocurrency exchange Bittrex for operating a securities exchange despite not being registered.

The complaint alleges that six types of cryptocurrency, including Algorand (ALGO) and OMG Network (OMG), are classified as securities, and other exchanges that provide cryptocurrency trading services to U.S. residents may take similar action in the future.

On the 18th, SEC Chairman Gary Gensler stated at the U.S. House of Representatives Financial Services Committee that "there is probably no sector that is more noncompliant than cryptocurrency."

He further criticized the cryptocurrency industry, saying, "It is a sector where noncompliance is an established business model," and indicated his intention to continue cracking down on cryptocurrency-related businesses that do not comply with laws and regulations.

On the other hand, Republicans and Democrats have criticized Gensler's attitude.

Republican Chairman of the House Financial Services Committee Patrick McHenry criticized the move, saying, "It stifles innovation and contributes to America's competitiveness."

Republican Rep. Tom Emmer cited Gensler's statement that "the cryptocurrency industry needs a policeman like the SEC," saying, "Incompetent policemen are not protecting the American people, they are driving American companies overseas and making them accomplices to China."

Democratic lawmakers also pointed out that "the lessons learned from the collapse of FTX have not been applied."

There are voices questioning Gensler's abilities, and a bill calling for his dismissal is being considered.

Reference:CNBC
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