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Sunday, August 7, 2022

Coinbase Facing SEC Probe Due To Listings Of Unregistered Securities in 2022

The Securities and Exchange Commission (SEC) is looking into Coinbase, the American cryptocurrency exchange, regarding their listing of a number of assets of crypto on the website. The probe is looking at if the exchanges have been advertising assets that could be considered unregistered securities, as per three people with direct knowledge of the situation.

Coinbase To Face SEC Scrutiny:

A Leading cryptocurrency exchange in the U.S., Coinbase is allegedly under more SEC scrutiny due to the spike in the number of cryptocurrencies offered on its site. SEC is going to look into if the exchange permitted American consumers to trade digital assets that might be regarded as unregistered securities, according to three persons “familiar with the case.”

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The alleged inquiry was started before another investigation led to the SEC accusing a previous product manager of the firm, his brother, and his insider trading buddy. According to the SEC, these acts have helped them to benefit by over $1.1 million.

In this investigation, the SEC claimed all nine cryptocurrencies offered on Coinbase’s platforms—AMP, RLY, XYO, DDX, RGT, LCX, DFX, Power, and KROM—are securities. Paul Grewal, the superior legal officer of Coinbase, has formally refuted these claims, asserting that the platform does not offer securities. The officer also submitted a petition on July 21 asking SEC to establish precise guidelines for securities backed by digital assets.

After being affected by the recent decline in the cryptocurrency market, this is the most recent of the issues that Coinbase is presently dealing with. The company would have to undertake deeper structural changes even though the exchange had already declared that it would prevent hiring in the month of May. In June, the exchange carried out a wave of layoffs that affected 18% of its personnel.

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