High-profile US-based exchange platform Coinbase is reportedly gearing towards putting up a proposed regulatory framework to federal authorities, focusing on the crypto sphere. 

Specifically, Coinbase is reportedly having plans down its pipeline to introduce the pitch publicly in the next few days. 

Although specified details are yet to be disclosed, one aspect of the pitch from the firm will reportedly concentrate heavily on the argument of how an asset is defined as a security in America. 

The news of the initiative reportedly surfaced following Coinbase’s decision to postpone a crypto lending offering, which is claimed to potentially break securities regulations by the Securities and Exchange Commission (SEC). 

In early September, Coinbase Chief Legal Officer Paul Grewal and current Head Brian Armstrong reportedly disclosed news of a received Wells Notice from the governmental agency, revealing the intention of bringing the company to court if its “Lend” offering is rolled out. 

The SEC reportedly mentioned two instances that happened in the past – the Howey and Reves cases – to back up its claim that “Lend” will be out of compliance with current securities legislations. 

Despite Coinbase not revealing the specifics of the Wells Notice, legal professionals believed that the regulating entity is comparing Lend to stocks or certificates of interest, which are recognized as securities under the SEC’s regulatory scope. 

Coinbase has been a veteran at putting in efforts to design frameworks and tools dedicated to the standardization of the way exchanges approach crypto listings and offerings, at least inside the territory of the US.