The SEC investigation into Coinbase is still ongoing, Michael Bacina, an Australian digital asset lawyer told Cointelegraph that the investigation could see far-reaching impact on crypto exchanges and the token projects involved.
Michael Bacina, an Australian digital asset lawyer with Piper Alderman told Cointelegraph that the impact on exchanges and projects could happen whether the tokens are ultimately securities or not.
“Given many of the tokens the SEC has called securities in their insider trading prosecution are listed and trading on Coinbase and other exchanges, this investigation could have serious and chilling effect for both those exchanges and the token projects, whether or not an ultimate finding is the tokens are or are not securities.”
He said
According to a legal expert, a Securities and Exchange Commission (SEC) investigation into this exchange’s alleged trading of unregistered securities may have a “severe and chilling effect” on cryptocurrency exchanges and token initiatives.
As has been updated in previous Coincu News articles, Coinbase is currently under the SEC investigation into whether it allowed US investors to trade assets that should have been registered as illegal securities or not. This investigation was launched shortly after the former Coinbase executive was charged with insider trading.
Bacina noted that Coinbase “could face very substantial fines” or potentially be required to register as an exchange in the U.S. as a result of the investigation.
Meanwhile, Coinbase has continued to deny it had listed any securities.
Paul Grewal, chief legal officer of Coinbase reiterated on July 25 to his Twitter followers that he is “confident” in the platform’s “rigorous diligence process” which keeps securities off its platform.
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