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Coinbase execs revealed today<\/a> that the crypto exchange has received a \u201cWells Notice\u201d from the Securities and Exchange Commission, indicating that after an investigation, the agency\u2019s staff plan to recommend some kind of enforcement action. That could include charges or lawsuits, but none of that has happened yet. <\/p>\n<\/div>\n According to Coinbase, the issue is \u201can undefined portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.\u201d Coinbase chief legal officer Paul Grewal shared a copy of the letter<\/a> (PDF) the company received from the SEC, complaining that<\/a> \u201cOver the past 9 months, CB has met with the SEC more than 30 times, sharing details of our business to build a path to registration. During this time, the SEC hasn\u2019t given basically 0 feedback on what to change, or how to register. Instead, today we received a Wells notice.\u201d<\/p>\n<\/div>\n Coinbase had similar notes when it received a Wells letter about the Lend program<\/a> before trying to launch it in 2021, saying the SEC hadn\u2019t provided clear information on what is security or how the company could register. Grewal and Coinbase CEO Brian Armstrong\u2019s tweet threads<\/a> about the letter say Coinbase prepared to defend its stance (that the products it offers shouldn\u2019t be considered securities) in court, but so far, no lawsuits or injunctions have been filed. <\/p>\n<\/div>\n For now, the company\u2019s blog post tells customers and investors that \u201cRest assured, Coinbase products and services continue to operate as usual \u2014 today\u2019s news does not require any changes to our current products or services.\u201d<\/p>\n<\/div>\n