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HomeCrypto NewsSEC reportedly launches investigation into Coinbase, alleging trading of 'unregistered securities'

SEC reportedly launches investigation into Coinbase, alleging trading of ‘unregistered securities’

The SEC has reportedly launched an investigation into Coinbase and alleges the exchange trades unregistered securities.

The bloomberg report quoted several sources that the probe will look into whether Coinbase allowed its U.S. investors to trade digital assets that should have been registered as securities. This is a separate probe from the insider trading investigation reported last week.

Experts state that Coinbase may face substantial fines or even potentially be required to register an an exchange in the U.S as a result of the investigation. Such a result, would likely be difficult for Coinbase to operate with its current business model.

Coinbase denies it listed any securities on its site. The chief legal office for Coinbase Paul Grewal tweeted on July 25th that he is “confident” in Coinbase’s “rigorous diligence process” which does not allow securities on the platform. Coinbase, also delisted XRP when the SEC began its investigation into whether XRP was a security or not which is an ongoing case.

The reported investigation has effected investors in Coinbase as well. Coinbase’s stock fell over 20% after news broke of the investigation. Cathie Wood’s Ark Investment Management Firm has also sold over 1.4 million Coinbase (COIN) shares amounting to over $75 million dollars.

Coinbase, Crytptocurrency, Crypto, NFTs
Coinbase

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