Coinbase Responds to SEC's Wells Notice Amid Share Dumping Accusations

Cryptocurrency exchange Coinbase has officially responded to the Securities and Exchange Commission (SEC) regarding the Wells Notice it received. This notice, served in late March and publicly addressed on April 27, signals the SEC's intention to potentially bring enforcement action against the exchange.

Coinbase responded to the SEC Wells Notice by stating that it had not violated securities laws in its United States operations. The company expressed its willingness to cooperate and engage in constructive dialogue with the SEC to address their concerns. The exchange said that enforcement action against it would fail on the merits and would present major risks to the SEC.

The Nasdaq-listed group confirmed it had received a “Wells Notice” from the Securities and Exchange Commission, which warns companies they might face legal action. The team expresses deep disappointment, claiming it was served the “Wells notice” over an unspecified portion of its listed digital assets and its staking service.

Coinbase founder Brian Armstrong and chief legal officer Paul Grewal spoke about the company’s Wells notice from the SEC on YouTube and at Consensus 2025. Their message emphasized Coinbase’s commitment to compliance and its belief in the legality of its operations.

The Wells Notice relates to Coinbase’s listing of certain digital assets and its staking service. Coinbase responded to the SEC Wells Notice by stating that it had not violated securities laws. Cryptocurrency exchange Coinbase said Thursday that it has responded to a Wells Notice received from the Securities and Exchange Commission (SEC), urging the agency to reconsider its position.

The market is closely watching how the SEC will respond to Coinbase's rebuttal. The implications of this regulatory battle could have significant consequences for the entire cryptocurrency industry.