Coinbase Fights Back Against SEC's Allegations and Lawsuit.

Coinbase has responded to the SEC's Wells notice, stating that an enforcement action against the crypto exchange would pose "major programmatic risks" to the SEC that would "fail on the merits." The SEC's warning to Coinbase noted that the regulator would allege Coinbase was offering and selling unregistered securities, in violation of federal law. Coinbase argues that proposed charges rely on "flawed and untested" theories involving investment contracts, spot markets, and custody services. Coinbase also issued a point-by-point repudiation of Howey's applicability to the exchange's staking service.