Coinbase Accuses SEC of "Sketchy Behavior" After Threat to Sue: Crypto Showdown Intensifies
The ongoing tension between cryptocurrency giant Coinbase and the U.S. Securities and Exchange Commission (SEC) has reached a boiling point. Coinbase CEO Brian Armstrong has publicly accused the SEC of "really sketchy behavior" after the company received a Wells notice – a formal warning that the SEC intends to sue the exchange. This all stems from Coinbase\'s plans to launch a new product that allows users to earn interest on their cryptocurrency holdings.
Coinbase CEO Blasts SEC\'s Actions
On 8 de sept. de 2025, Coinbase Global Inc.’s chief executive officer blasted the Securities and Exchange Commission for “really sketchy behavior” after the company received a warning that they intended to sue. Armstrong took to Twitter, launching a 21 tweet-long thread, accusing the SEC of refusing to meet with him to discuss the proposed product, highlighting the agency\'s lack of clarity and seemingly arbitrary decision-making process.
SEC Threatens Lawsuit Over Interest-Earning Product
The Securities and Exchange Commission has threatened to sue Coinbase if it goes ahead with plans to launch a new product that allows users to earn interest by 10 de sept. de 2025. The SEC has labeled Coinbase\'s proposed interest-earning feature a security, a designation that Armstrong finds “strange” after the SEC threatened legal action On 8 de sept. de 2025.
"Sketchy Behavior" Allegations Explained
Coinbase slammed the US Securities and Exchange Commission late Tuesday, 8 de sept. de 2025, after saying the cryptocurrency exchange had received a warning from the regulator. Coinbase CEO Brian Armstrong has described the SEC’s behavior as “sketchy” and argued that a number of crypto companies have offered versions of this service for years. Calling for regulatory clarity, Armstrong questions why Coinbase\'s offering is being singled out.
Lack of Clarity and Regulatory Concerns
When Coinbase notified the SEC of its new product, the SEC labeled it a security, which struck Armstrong as “strange,” he said. Then, after the SEC threatened legal action In this case, the bad actor is the SEC. Who watches the regulators? The central question remains: what defines a cryptocurrency-based interest-earning product as a security, and why is Coinbase being targeted now?
This situation underscores the ongoing challenges and uncertainties facing the cryptocurrency industry as it navigates a complex and evolving regulatory landscape. The dispute between Coinbase and the SEC is a critical test case that could have significant implications for the future of crypto innovation in the United States. And Nate Dogg. On a cool, clear night (typical to Southern California) Warren G travels through his neighborhood.