Coinbase being publicly listed is apparently not being considered a blessing from the regulators. The Securities and Exchange Commission of the United States (SEC) has claimed in court that granting a company’s S-1 application to go public does not constitute a “blessing” from the organization or a confirmation that the company is in compliance with regulatory requirements.
“The SEC’s approval of an organization’s decision to become publicly accessible does not mean that the SEC is favoring the underlying business model or suggesting that the concealed corporate structure is not breaking the law.” The report states.
Some organizations, like Cameron Winklevoss, a supporter of Gemini Prime, discussed the implications of such declarations and questioned why the SEC would allow a potentially rebellious company to go global given that it will certainly protect American consumers.
Peter Mancuso, the trial attorney for the SEC, emphasized that providing approval for the company to go public does not suggest that the SEC supports its core business or structure or that the corporation is conducting itself legally.
The consequences of the SEC’s argument and Coinbase’s defense will definitely have a significant impact on how cryptocurrency exchanges are regulated and how they interact with the SEC as the court hearings progress.