Coinbase CEO Brian Armstrong says the US-based crypto exchange is prepared to face the U.S. Securities and Exchange Commission (SEC) in court.
The statement comes after Coinbase received a Wells Notice from the regulator last month that said that the agency was considering filing an enforcement action against the exchange for allegedly violating securities laws in the US.
In a new CNBC interview, Armstrong says Coinbase was not informed of any issue prior to the issuance of the notice.
“Over the last year, we had 30 meetings and never got a single piece of feedback from them about what we could be doing better or differently and then this Wells Notice arrived, so it’s really unfortunate.”
Armstrong says that the SEC failed in its responsibility to establish clear standards for the market so the court’s decision is being resorted to in order to get the needed clarity.
“I think we’re gonna have to actually end up going to court to get the clarity we need and create that case law. It’s an abdication of responsibility. I mean, the regulator’s job is to publish a fear rulebook and allow that market to be safe, also to flourish in that country and I think they’ve completely abdicated responsibility.”
Armstrong says they are prepared for a lengthy battle with SEC in case the suit will drag on for years.
“We never seek litigation but it seems in this case that they have initiated it and if we need to get the courts to get the clarity that we need, we’re very prepared to do that.”
The executive is also optimistic that if a suit ensues, Coinbase will likely win the case.
“I think the law is on our side and the SEC has to follow rule of law. I think their actions would not be sympathetic to a jury and so we’re very prepared for this. We’re going to court to win. Just to be clear, I think we have a very strong case and that’s exactly what we intend to do.”