Coinbase Reportedly Facing SEC Test for Listing Unregistered Securities – Bitcoin News

Coinbase, the US cryptocurrency exchange, is said to be facing a Securities and Exchange Commission (SEC) investigation over the listing of several crypto assets on its platform. The investigation, according to three people with prima facie knowledge of the matter, is examining whether the exchange lists assets that could be classified as unregistered securities.

Coinbase under SEC audit

Coinbase, the leading cryptocurrency exchange in the United States, is It said It is facing increased scrutiny by the Securities and Exchange Commission (SEC) due to the expansion of the number of tokens listed on its platform. According to three people “with knowledge of the matter,” the Securities and Exchange Commission will investigate whether the exchange has allowed US customers to trade crypto assets that could be considered unregistered securities.

The reported investigation was created at an earlier date, before another investigation that led to the Securities and Exchange Commission (SEC) filing insider-trading charges against a former Coinbase product manager, brother, and friend. Those actions allowed them to earn more than $1.1 million, according to the Securities and Exchange Commission.

In this investigation, the Securities and Exchange Commission alleged that nine of the crypto assets listed on Coinbase platforms are securities, namely AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. However, Paul Grewal, Coinbase’s chief legal officer, has officially denied the allegations, claiming that the exchange does not list the securities. Grewal too Foot Petition to the Securities and Exchange Commission to issue clear rules on securities for digital assets on July 21.

More woes

These are just the latest issues that Coinbase is currently facing, after experiencing the recent downturn in the cryptocurrency market. While the exchange announced it would slow hiring in May, the company had to make deeper changes to its structure. The exchange carried out a series of layoffs in June, leaving 18% of its workforce.

Coinbase’s stock price on Nasdaq is also suffering as a result of global macroeconomic conditions and the so-called “crypto winter” phase the market is facing. Analysts from Goldman Sachs lowered the $COIN rating to a sell rating in June when the stock was priced 83.78% below its all-time high of $342.98. At the time, analysts said the company had to make “significant cuts to its cost base.”

What do you think of the investigation that the SEC is said to be conducting against Coinbase in connection with the listing of unregistered securities? Tell us in the comments section below.

Sergio Goshchenko

Sergio is a crypto journalist based in Venezuela. Describing himself as a latecomer, he got into the crypto world when the price spike occurred during December 2017. Having a background in computer engineering, living in Venezuela, and influenced by the crypto-currency boom on a social level, he offers a different perspective on the success of crypto and how it helps the people who They do not deal with banks and those who suffer from a lack of services.

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