COINBASE TRIES NOVEL DEFENSE IN SEC FIGHT
Coinbase is currently squaring off with the SEC about the regulatory body’s claims that Coinbase was operating as a stock exchange and brokerage without adhering to investor-protection rules. One of the main lines of defense Coinbase is leveraging is that the SEC approved the company to go public in April 2021, claiming the regulatory body signaled that its core business was not unlawful. However, securities lawyers point out that the SEC's review process only examines companies' risk disclosures to investors, not their business models' legality. The SEC also maintains that disclosure reviews don't determine compliance with laws beyond disclosure and accounting.
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