Coinbase Receives SEC Wells Notice Regarding Intent to File Suit Over Crypto Offerings

Posted on March 30th, 2023 at 1:20 PM
Coinbase Receives SEC Wells Notice Regarding Intent to File Suit Over Crypto Offerings

From the desk of Jim Eccleston at Eccleston Law 

Coinbase Global announced that it has received a Wells Notice from the Securities and Exchange Commission (SEC) declaring the regulator’s intent to file an enforcement action against the cryptocurrency exchange.

SEC Chairman Gary Gensler repeatedly has taken the position that numerous tokens and products currently offered by cryptocurrency companies constitute securities that must be registered with the regulator. Coinbase announced that the notice implicates certain parts of its exchange as well as the staking service Coinbase Earn and Coinbase Wallet. A Wells Notice provides an opportunity to rebut the SEC’s accusations.

Coinbase announced that its products and services will continue to operate as usual for now, according to Paul Grewal, chief legal officer of Coinbase. Coinbase has maintained the position that its tokens and products do not constitute securities. Coinbase previously received a Wells Notice in 2021 when the SEC warned the company that its proposed “Lend” product, which would have permitted users to earn interest by lending out their cryptocurrency holdings, constituted security. Coinbase subsequently abandoned the launch of its “Lend” product.

 

Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your efforts. You have proven to be a valuable resource.

Jim T.

LATEST NEWS AND ARTICLES

February 26, 2026
The Quiet Crossroads Facing Mid Career Financial Advisors

According to Financial Advisor News, mid life transitions rarely look dramatic in the financial advisory world.

February 26, 2026
FINRA Bars Former Cambridge Advisor After Refusal to Cooperate With Communications Probe

A former advisor affiliated with Cambridge Investment Research has been barred from the securities industry after declining to comply with a regulatory investigation, according to the Financial Industry Regulatory Authority (FINRA).

February 25, 2026
Advisors Increase Crypto Allocations as Merrill Lynch Warns of Significant Risks

Financial advisors are placing more client assets into digital currencies, even as major firms caution investors about the asset class's volatility and speculative nature.