Cryptocurrency exchange Coinbase announced it has received a "Wells notice" from the US Securities and Exchange Commission (SEC) regarding some of their digital assets, Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a preliminary investigation. 

Coinbase CEO Brian Armstrong explained: “A Wells notice typically precedes an enforcement action.” However, the firm assures users that its products and services will continue to operate as usual.

According to Coinbase, the SEC has provided limited information on the potential violations of securities laws, despite the company's repeated requests for clarification on which assets on their platform may be considered securities. Coinbase claims to have made several proposals to register with the SEC, but the regulator has reportedly declined to provide any feedback.

"After years of asking for reasonable crypto rules, we're disappointed that the SEC is considering courts over constructive dialogue. But if courts are required, so be it. We'll defend the rule of law." Paul Grewal, the Chief Legal Officer of Coinbase, wrote in a tweet.

The Nasdaq-listed crypto platform emphasized that it does not list or offer any securities tokens or products on its platform. The company also stated that it has invited the SEC to raise any questions regarding any asset on their platform, but the regulator has not raised any concerns so far.

"For comparison, over many years we have been able to successfully become a licensed and regulated crypto business in a number of other jurisdictions around the world, including Singapore, Ireland, Australia, and Germany. We've also been able to successfully become regulated by another U.S. federal regulator, obtaining our DCM and DCO license from the CFTC. And by many U.S. state regulators. The SEC remains a sole outlier here. " Grewal added.