Coinbase Faces SEC Probe on Crypto Listings
According to Bloomberg, Coinbase is under investigation by the Securities and Exchange Commission (SEC). The case concerns the listing of a number of cryptocurrencies, which according to the regulator are securities.
Recall that a former Coinbase executive was arrested last week in the U.S. on charges of insider trading.
U.S. authorities want to finally bring order to the "Wild West of cryptocurrencies." SEC Chairman Gary Gensler confirmed this: he said that the commission will do more to protect retail investors.
What does the SEC want from Coinbase?
Coinbase is the largest cryptocurrency exchange in the U.S. and offers trading of more than 150 tokens. If the commission deems them securities, the company will have to register with the SEC as a stock exchange.
Coinbase and the SEC have had repeated disputes over this issue. The crypto exchange is asking the commission to develop clearer rules that define crypto-assets as commodities or as securities.
Coinbase shares fell $5.23 to $61.84 at 9:32 a.m. in New York on Tuesday and changed hands for as little as $60.91. The stock has lost almost three-quarters of its value this year.
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