Regulatory policy of the SEC regarding digital assets could negatively affect the financial position of the United States. This was stated by Coinbase’s CEO Brian Armstrong.
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— Brian Armstrong (@brian_armstrong) March 23, 2023
In his view, compared with countries such as the United Kingdom, Brazil and Singapore, the United States are significantly behind.
On March 23 the SEC sent a notice to the company about an investigation into the listing procedures on the platform and its products — Coinbase Prime, Coinbase Wallet and staking service Coinbase Earn.
“We should not be subjected to such coercive regulation. In a sense we are glad to go to court if this helps develop case law for the industry,” added the Coinbase chief.
Armstrong also urged American users to vote for policymakers who support cryptocurrencies.
“We are going to elect candidates who support digital assets to ensure that our success is secured,” he said.
In the wake of the SEC inquiry, Coinbase shares fell 14% over the past 24 hours. The current price is $66.30.
Analysts at KWB, in a comment to The Block, said that the exchange’s revenues could take a serious hit if it is forced to delist coins from its listings at the SEC’s demand.
According to experts, about 11% of Coinbase’s digital assets are highly likely to be classified as securities, while a further 45% are exposed to medium risk.
Analysts also noted that a forced exit from staking on the exchange would not pose significant problems. By their estimates, the service accounts for around 3-4% of total profits.
In February, Armstrong said he was prepared to defend the exchange’s staking programme in court.
In early March Coinbase launched a public campaign to promote and support digital assets among policymakers and regulators.