Coinbase (NASDAQ:COIN) stock is dipping lower on Wednesday following the revelation of trouble with the U.S. Securities and Exchange Commission (SEC).
Brian Armstrong, the co-founder and CEO of Coinbase, took to Twitter (NYSE:TWTR) to discuss the recent problems the company is having with the SEC. According to him, the SEC is threatening legal action if the company moves forward with options to offer yields on crypto.
Armstrong points out that several other crypto companies already do this and that Coinbase was looking to follow suite. However, things went south went it filed a registration with the SEC letting it know about the plan.
The Coinbase CEO says that the SEC claims this would be a security. Armstrong says that the company sought clarification on this point, but that the SEC regused to offer up written guidelines explaining its point of view.
Instead, the SEC subpoenad documents from the company and required testimony from its employees. The Coinbase co-founder says that the company complied with both requests. Even so, it couldn’t get any additional details about why the SEC was rejecting its plan.
Armstrong notes that he even showed up at Washington DC to meet with regulators. All of them were willing to see him, expect for the SEC. He says that Coinbase will continue to follow guidelines but notes that the SEC isn’t providing any in this case.
Armstrong closes out his Twitter thread with the following message.
“Our door remains open. Hopefully the SEC steps up to create the clarity this industry deserves, without harming consumers and companies in the process. America could really use us all working together to figure this out right now.”
COIN stock was down 2.5% as of Wednesday afternoon.
Investors looking for more recent crypto news will want to stick around.
We offer up daily coverage of the crypto market and today is no different. A few players in the space worth checking in on today include Vinco Ventures (NASDAQ:BBIG), Axie Infinity (CCC:AXS-USD), and Algorand (CCC:ALGO-USD). You can learn what’s happening with them at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.