Coinbase VS SEC: The SEC Undergoes Questioning From Judge
Judge Questions SEC's Lack of Warning to Coinbase Before Its Public Debut
A New York judge has questioned why the U.S. Securities and Exchange Commission (SEC) didn't warn Coinbase, a cryptocurrency platform, that it might be breaking laws before it was allowed to become a public company.
The SEC accused Coinbase in June of selling unregistered securities. SEC lawyer Peter Mancuso said that just because the SEC approved Coinbase's request to go public doesn't mean it agreed with how Coinbase runs its business.
But Judge Katherine Polk Failla wondered why the SEC didn't tell Coinbase about possible legal problems earlier. She thought the SEC should have investigated Coinbase's business and warned them about potential issues.
The judge also said Coinbase may have thought it was doing everything right because the SEC didn't warn them before they became a public company. She said it would have made sense for the SEC to tell Coinbase to register as a securities exchange if necessary.
