• Vishal Gupta, head of exchange at Coinbase, is leaving the company to pursue a new project in the crypto space.
• Coinbase has recently become the subject of increased regulatory scrutiny from the US Securities and Exchange Commission (SEC).
• The company has responded to the SEC’s action by calling their approach “unfair and unreasonable”.
Vishal Gupta Leaves Coinbase
Vishal Gupta, Coinbase’s head of exchange, is reportedly leaving the company. Gupta plans to exit the crypto exchange but intends to remain in the crypto space. According to someone familiar with the matter, the focus of Gupta’s latest effort is unclear, but he reportedly remains in the crypto space. Before joining Coinbase, Gupta was most recently senior director of product management and head of USD Coin for stablecoin issuer Circle.
Coinbase Under Regulatory Scrutiny
The largest crypto exchange in the US has become subject to increased regulatory scrutiny as watchdogs step up their crypto policing efforts. Recently, Coinbase was served with a Wells Notice from the United States Securities and Exchange Commission (SEC), which signals enforcement action plans against it. This notice involves unspecified digital assets listed on its platform as well as its staking service Coinbase Earn, Prime, and Wallet services.
Coinbase Responds To SEC Action
In response to this action from securities regulator, Coinbase called it “unfair and unreasonable” insisting that rulemaking and legislation are better tools for defining laws for their industry than enforcement actions. Nonetheless they expressed willingness for clarity on court if necessary.
Vishal Gupta’s departure from cryptocurrency giant Coinbase marks an important transition point for both parties involved as well as a sign of things to come with increasing regulation targeting exchanges such as them. Despite expressing disagreement with current SEC action against them they have expressed willingness to work towards clarification if needed in court setting
This article is provided for informational purposes only and should not be used as legal or tax advice