More cryptocurrency companies are taking an aggressive response in publicly disclosing they have received a Wells notice from the U.S. Securities and Exchange Commission notifying the organization of potential enforcement action. This includes crypto exchange Coinbase Global that posted a video response online to the SEC. Recently Robinhood Markets disclosed in a securities filing that its crypto arm may face an enforcement action.
In a Law360 article, litigation and enforcement partner Helen Gugel explained there are benefits to crypto firms publicly shaping the narrative. She notes that public statements about SEC Wells notices can maintain crypto firm market confidence by telling investors there is a broader story behind whatever might be in an SEC compliant. And it declares to the SEC that the crypto company will not back down and put the regulator to its proof.
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