The largest crypto exchange in the US, Coinbase, has made a notable move regarding the allegation from the US Securities and Exchange Commission on securities law violation.
Coinbase engaged a Global Advisory Council for the battle with the SEC. The council comprises heavy hitters from both the political and legal sectors.
Coinbase Gets Heavyweights In Its Council
The Coinbase crypto exchange announced the launch of a new Global Advisory Council, with some former US lawmakers as members.
According to the announcement, the Council will offer insights and business strategies for the exchange.
The Advisory Council includes political heavyweights like former Congressman Tim Ryan (D-OH) and former Senator Patrick Toomey (R-PA).
Also, the Council includes former Congressman Sean Patrick Maloney (D-NY), John Anzalone from Impact Research, and Chris Lehane from Haun Ventures.
The Council will work closely with Coinbase Asset Management Academic and Regulatory Advisory Council members.
Similarly, the Coinbase body comprises prominent personalities such as former SEC Chair Jay Clayton and former CIA General Counsel Courtney Elwood.
Others are the senior managing director at Compass Lexecon Jon Orszag and Kevin Hassett of the Hoover Institution.
Coinbase noted that creating the Advisory Council is a step in the right direction for the company. It would help the exchange to maintain a flawless operation process while rebuilding its strategies in the US and globally.
Coinbase is currently in a legal face-off with the SEC. So, engaging a new council is part of its preparatory strategies.
Coinbase Prepares To Fight With The SEC
Notably, the US SEC has toughened its regulatory stance in the crypto industry and is now closely watching most crypto-related firms.
In one of its enforcement actions, the SEC issued a Wells Notice to Coinbase in March, warning the company of a possible lawsuit over alleged breaches of securities.
Reacting to the notice, Coinbase CEO Brian Armstrong noted that the regulator is focusing its accusations on staking and asset listing. He recalled that the SEC had reviewed the exchange’s operations and approved its license in the past.
Armstrong stated that they requested a reasonable explanation from the SEC. According to the CEO, the firm intended to use the reply for rulemaking to maintain the right regulatory requirements for crypto assets. However, the SEC gave no response to the exchange’s request.
Further, Paul Grewal, the Chief Legal Officer of Coinbase, expressed disappointment over the SEC’s preference for lawsuits to constructive dialoguing.
He noted that despite all their efforts to work with the SEC, the regulator gave them no feedback. Grewal stated that Coinbase would defend the rule of law if the SEC initiated a legal battle.
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