Coinbase refuses to change business model due to SEC lawsuit
Date: 2023-06-09 Categories: BUSINESS
On June 6, the regulator filed a civil lawsuit against the company. The commission accused Coinbase of an unregistered offering of securities in the form of a number of tokens on a trading platform.
The agency also targeted the Coinbase Earn staking program.
“We are not going to end our staking service. Again, the way these court cases play out, it really is just business,” Coinbase CEO Brian Armstrong told the Bloomberg Invest Conference, according to CoinDesk.
He noted that the program brings in approximately 3% of the total net income of the exchange.
Coinbase's chief legal officer, Paul Grewal, told The Block that the company has not yet made a decision to delist any assets. According to him, the exchange adds cryptocurrencies to the platform after careful analysis and is confident in its choice.
“We believe that we are not just dealing with a legitimate business, but an extremely positive and productive business. Therefore, until we are convinced that everything we do is a violation of the law, we will continue to conduct business as usual, ”Grewal emphasized.
Armstrong dismissed concerns about the company's financial strength in the event of a mass withdrawal of assets by investors.
“All funds are provided one to one. As a public company, we have auditors […] who have checked everything,” he assured.
