• Coinbase has made public a Wells Notice from the US SEC.
• A Wells Notice implies that this could be followed by an enforcement action.
• Coinbase CEO Brian Armstrong claims that the exchange isn’t surprised by the SEC’s move.

Coinbase CEO Brian Armstrong has weighed in on the company’s revelation that it had been presented with a Wells Notice from the US Securities and Exchange Commission (SEC), claiming via Twitter Spaces that the exchange wasn’t taken aback by the regulator’s action.

Coinbase Had 30 Meetings With SEC Without Any Feedback

As CNBC reported on Friday, Armstrong and other executives have disclosed that they had interacted with the SEC in the past.

“We had a series of 30 meetings in the last nine months and during these meetings we provided details on the business and answered all questions,” the Coinbase CEO stated.

Armstrong said Coinbase spent millions of dollars in legal fees while trying to explain every aspect of its business, including digital asset listings and staking rewards. He added that the SEC did not provide feedback during the nine-month period, noting that the agency abruptly cancelled a meeting it had arranged for that purpose.

“That was the first feedback we got in 30 meetings. The day before that meeting was cancelled without explanation. Then a few weeks later we get a Wells Notice,” he noted.

On Thursday, Armstrong tweeted that the SEC reviewed Coinbase’s business and gave the go-ahead to its IPO. 

Coinbase Stock Takes a Tumble 

The Wells Notice is a signal that the securities regulator is considering enforcement action against the largest US-based cryptocurrency exchange. As such, investor reaction to the news saw the publicly-listed company’s shares plummet to lows of $61.87.

The Coinbase stock has been down by almost 15% in the last five days.