Coinbase, the leading cryptocurrency exchange in the United States, has been the subject of scrutiny by the US Securities and Exchange Commission (SEC), causing a stir in the cryptocurrency community.
While some have criticized the SEC’s actions, others have taken the opportunity to attack the company, including members of the XRP community who were still unhappy that Coinbase had previously removed XRP from the Coinbase Wallet. However, Ripple Labs’ Chief Legal Officer, Stuart Alderoty, extended his support to Coinbase in response to the SEC’s actions, stating, “The enemy of my enemy is my friend” on Twitter.
David Schwartz, another Ripple executive, also criticized the SEC’s recent actions, particularly the Wells notice sent to Coinbase, on Twitter. He raised questions about the SEC’s motivations and suggested that their actions could harm American buyers.
Meanwhile, Coinbase’s Chief Legal Officer, Paul Grewal, issued a blog post stating that the company was confident in its business operations and how it had presented itself to the SEC when it went public in 2021. The SEC’s move against Coinbase has caused the exchange’s share prices to drop over 13%. This latest enforcement motion comes at a time when the SEC is making an effort to regulate the largely unregulated cryptocurrency industry.