SEC’s wells notice has led to morale boost at Coinbase: Brian Armstrong

• Coinbase CEO Brian Armstrong has stated that the SEC’s Wells notice has caused a boost in morale.
• The recently launched L2 base is encouraging builders to focus on non-fiat pegged stablecoins called flatcoins.

Brian Armstrong, the chief executive of American crypto exchange Coinbase, took to Twitter on 26 March to share his thoughts on the Wells notice that was issued by the U.S. Securities and Exchange Commission (SEC) last week.

A Wells notice is sent to inform a company that the SEC is planning enforcement action against them.

The CEO is apparently keen on looking at the bright side. He added that the SEC’s notice had led to “a noticeable boost in morale.”

Coinbase pitches non-fiat pegged stablecoin 

In his tweet, Brian Armstrong also highlighted the importance of continuing to develop and contribute to the firm’s product line. The CEO tweeted:

“The main goal is to build better products for our customers. Improving the policy landscape is necessary but not sufficient.” 

Furthermore, a user on crypto Twitter pointed out that Coinbase is encouraging developers and builders on Base, its Ethereum layer 2, to focus on flatcoins or non-fiat pegged stablecoins, among a handful of other “critical areas.”

Flatcoins are stablecoins that track the rate of inflation, enabling users to have stability while limiting exposure to economic uncertainties. The American crypto giant cited the recent turmoil in the banking industry to highlight the need for such a stablecoin. 

According to a blogpost by Coinbase, titled “Request for builders”, Olympus DAO, Frax, and Reflexer are among the crypto projects that are currently exploring flatcoins.

Additionally, the blog post also listed three other areas for builders on Base to focus on which are – Onchain Reputation, Onchain Limit Order Book (LOB) Exchange, and Safer DeFi.

Builders interested in these could benefit from the Base Ecosystem Fund, a capital pool for early-stage investment in projects.