John Deaton, a legal representative for XRP holders and a pro-crypto advocate, has praised Coinbase's response, saying that it sets an example of how to stand up for one's interests by extending the olive branch of dialogue and cooperation while demonstrating firmness and unwavering in their beliefs.
The response, released on April 27, was made in relation to a Wells Notice received by the exchange in March. The notice applies to certain digital assets listed on Coinbase, Coinbase Earn, Coinbase Prime and Coinbase Wallet. It suggests that the firm should provide a reasoned response in writing, explaining why the Securities and Exchange Commission should not take legal action against the company.
In the response, Coinbase CEO Brian Armstrong and General Counsel Paul Grewal stated that the U.S. exchange will fiercely defend itself in court against any legal action taken by SEC. At the same time, they expressed a desire for clarity in regulating the crypto industry through cooperation and dialogue. They also stated that the cryptocurrency regulatory framework in the United States needs more guidance, not stronger enforcement.
The SEC has been increasing its scrutiny of the cryptocurrency industry in recent months, and Coinbase is not the only exchange to receive a Wells Notice. However, the response from Coinbase suggests that the company is prepared to fight any legal action taken by the SEC in court. It remains to be seen what the SEC's next steps will be and how the situation will develop.