SEC Reportedly Investigating Coinbase Over Cryptocurrency Listings
The US Securities and Exchange Commission (SEC) is now examining whether the cryptocurrencies offered on the exchange are securities, only days after charging two former Coinbase product managers and two others with insider trading.
The exchange has caught the attention of the United States Securities and Exchange Commission (SEC) over cryptocurrency listings. Sources familiar with the matter told Bloomberg that the SEC is investigating whether the exchange lets users trade assets that should have been registered as securities.
The probe has not been made public yet, and the SEC has not commented on the Bloomberg report. The publication said that the SEC had increased its scrutiny of the exchange after increasing the number of tokens on the platform. Chief Legal Officer of Coinbase Paul Grewal said over Twitter:
In recent months, Coinbase has significantly increased its token offering, which is now over 150. If the SEC manages to treat those tokens as securities, the exchange will require registration with regulatory authorities.
On July 21, a former Coinbase manager, Ishan Wahi, his brother, and a third individual were detained in a significant indictment for insider trading in the crypto business.
During this period, the SEC argued with Coinbase over classifying tokens like ENS, GALA, POWR, and ALCX as securities. On the other hand, the DOJ and the CFTC do not appear to concur with the SEC’s comments.
Coinbase’s capacity to expand has also been hampered by the recent crypto market slump. It recently imposed a hiring freeze, and several prospective workers had their offers withdrawn. Following the layoffs, the exchange presented an update on operational efficiency.
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