SEC's Potential Lawsuit Against Coinbase Raises Concerns for Crypto Industry

Coinbase CEO Brian Armstrong has compared the SEC to "soccer refs" in a game of pickleball, criticizing U.S. regulators for not being able to "agree on the rules" of "this new game." Armstrong's comments came after the firm received a Wells notice, which he said "typically precedes an enforcement action." Both Armstrong and Coinbase's chief legal officer have criticized the SEC for not providing clear rules on crypto regulation and have welcomed the chance to use the legal process to provide the industry with regulatory clarity. The crypto community has widely condemned the recent notice, with many agreeing that the SEC has reversed its earlier position regarding Coinbase.