Coinbase, a US-based cryptocurrency exchange, is reportedly facing an investigation from the Securities and Exchange Commission (SEC) regarding the listing of several crypto assets on its platform The company is reportedly facing an SEC investigation into the listing of several crypto assets on its platform. According to three people ostensibly familiar with the matter, the investigation is looking into whether the exchange listed assets classified as unregistered securities.
Coinbase is reportedly under SEC scrutiny
Coinbase, a major U.S.-based cryptocurrency exchange, is reportedly facing increased scrutiny from the SECdue to the growing number of tokens listed on its platform. According to three people “familiar with the matter,” the SEC will investigate whether the exchange was allowing U.S. customers to trade cryptocurrency assets that could be considered unregistered securities.
The reported investigation was established earlier in the day before another investigation that resulted in the SEC filing insider trading charges against a former Coinbase product manager, his brother, and his friend. according to the SEC, these actions allowed them to profit over $1.1 million.
In this investigation, the SEC alleged that nine of the cryptocurrency assets listed on Coinbase’s platform were securities, noting that these were AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. However, Paul Grewal, Coinbase’s Chief Legal Officer, has publicly denied these allegations, claiming that the exchange does not list securities. Grewal also filed a petitionwith the SEC on July 21to issue clear rules regarding digital asset securities.
More Struggles
This is just the latest of the problems Coinbase is currently facing after being hit by the recent downturn in the cryptocurrency market. The exchange announced in May that it was delaying adoption, but the company had to make deep changes to its structure. The exchange implemented a series of layoffs in June, letting go 18% of its workforce.
The price of Coinbase shares on the Nasdaq has also suffered as a result of the global macroeconomic situation and the so-called “cryptocurrency winter” phase the market is currently facing. Goldman Sachs analysts downgraded $COIN to Sell in June when the price was 83.78% lower than its all-time high of $342.98. At the time, analysts said the company needed to “significantly reduce its cost base.”
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