The SEC lawsuit against Coinbase’s management raises some questions about how the company is handling the regulatory environment.
Venture capitalist Kevin O’Leary criticized Coinbase’s strategy, stating that the company’s market value has decreased with the SEC lawsuit and it seems that the management still wants to continue fighting the SEC.
SEC Lawsuit Over Coinbase’s Governance Reflects Negatively on Company Assets
Coinbase has made efforts for clearer crypto regulations in the US and is at a time of increasing regulatory scrutiny. CEO Brian Armstrong said they had spoken to the SEC more than 30 times in the past year and had not received any feedback on their compliance path.
Regulatory attorney Mark Kornfeld notes that regulatory action, such as the SEC lawsuit, lowers stock prices and is often used as a template for private damage claims based on misleading statements or claims of omissions. However, he states that whether the allegations are proven or not is hidden in the details.
Legal claims against Coinbase and its management may vary depending on whether Coinbase complies with relevant regulations by listing its crypto assets.
Coinbase has reviewed thousands of assets and rejected 90 percent of them. Armstrong stated that they think some assets may be securities or have other concerns.
60939
