Cryptocurrency

SEC against Coinbase: U.S. exchange regulator launches investigation into Coinbase business

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SEC against Coinbase: The U.S. exchange regulator has begun investigating Coinbase’s service structure. The exchange announced this in its quarterly investor report.

It is reported that the U.S. Securities and Exchange Commission (SEC) has asked for information from Coinbase about certain customer programs, transactions, and existing and future products.

The SEC also asked Coinbase for details on how exactly the exchange decides which assets to add to the listing and the method by which it classifies them. Also, the regulator demanded information about services related to staking and earning deposits in stablecoins. Coinbase said it could not predict the consequences of such requests from the SEC.

Nevertheless, the trading floor did warn that “in light of the uncertainties” surrounding the regulation of the crypto market, the potential damage to Coinbase could be “substantial.”

The SEC and Coinbase are often in the same news headlines. As a reminder, Bloomberg previously found out that the SEC organized an investigation into the actions of cryptocurrency exchange Coinbase in listing tokens. According to the publication, the reason for launching an investigation was the suspicion of the SEC that Coinbase has opened the American users’ access to transactions in cryptocurrencies, which can be attributed to the class of securities.

Coinbase does not believe it broke any laws, as the site claims the exchange regulator had already vetted its methodologies for listing. The SEC, however, identified at least a few tokens in Coinbase’s listing that the regulator believes are securities.

We previously reported that a critical vulnerability discovered in Bitcoin protocol.

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