Billionaire Mark Cuban offered some advice to Coinbase CEO Brian Armstrong on how to deal with a potential SEC lawsuit.
Earlier today, it was alleged that the SEC threatened to sue Coinbase over an impending debt program (Lend). Cuban urged Coinbase to take the offensive against the SEC.
Cuban used the following statements to Coinbase CEO and founder Brian Armstrong:
“Brian, this is a ‘litigation arrangement’. They cannot handle this on their own and are afraid of making mistakes while doing it. They leave that to the lawyers. You have to continue more aggressively”
Coinbase says the company wants to take a more collaborative approach by meeting with regulators for half a year to get the Lend product approved.
Announced in June and not yet released, Coinbase Lend promises USDC holders a 4% return on their savings on Coinbase.
Cuban also won a lawsuit against the SEC in 2013. Instead of making a deal, Cuban chose to spend $12 million in acquittal.
Coinbase, the largest cryptocurrency exchange in the US, has the resources to fight the SEC, and the company’s CEO, Brian Armstrong, seems to be aware of it. However, the company prefers not to take it there.
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