{"id":13370,"date":"2022-07-26T11:57:48","date_gmt":"2022-07-26T11:57:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/coinbase-reportedly-facing-sec-probe-for-listing-unregistered-securities-bitcoin-news\/"},"modified":"2022-07-26T11:57:48","modified_gmt":"2022-07-26T11:57:48","slug":"coinbase-reportedly-facing-sec-probe-for-listing-unregistered-securities-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/coinbase-reportedly-facing-sec-probe-for-listing-unregistered-securities-bitcoin-news\/","title":{"rendered":"Coinbase Reportedly Facing SEC Probe for Listing Unregistered Securities \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Coinbase, the U.S.-based cryptocurrency exchange, is reportedly facing a probe from the Securities and Exchange Commission (SEC) over the listing of several crypto assets on its platform. The investigation, according to three people with ostensible knowledge of the matter, is examining whether the exchange has been listing assets that can be classified as unregistered securities.<\/strong><\/p>\n

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Coinbase Reportedly Under SEC Scrutiny<\/h2>\n

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Coinbase, a leading U.S.-based cryptocurrency exchange, is reportedly<\/a> facing increased scrutiny from the SEC due to the expansion of the number of tokens listed on its platform. According to three people \u201cfamiliar with the matter,\u201d the SEC will be investigating whether the exchange has allowed American customers to trade cryptocurrency assets that can be considered unregistered securities.<\/p>\n

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The reported investigation was established at an earlier date, before another probe<\/a> which resulted in the SEC filing insider trading charges against a former Coinbase product manager, his brother, and his friend. These actions allowed them to profit by more than $1.1 million, according to the SEC.<\/p>\n

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In this probe, the SEC alleged that nine of the cryptocurrency assets listed on Coinbase\u2019s platforms are securities, these being AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. However, Coinbase\u2019s chief legal officer, Paul Grewal, has officially denied<\/a> these allegations, claiming that the exchange does not list securities. Grewal also filed<\/a> a petition to the SEC to issue clear rules regarding digital asset securities on July 21.<\/p>\n


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More Woes<\/h2>\n

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This is just the latest of the problems that Coinbase is currently facing, after being hit by the recent downturn in the cryptocurrency market. While the exchange announced<\/a> that it would slow hiring in May, the company had to make deeper changes to its structure. The exchange executed<\/a> a series of layoffs in June, letting go of 18% of its workforce.<\/p>\n

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The price of Coinbase stock on Nasdaq is also suffering as a result of the global macroeconomic conditions and the current so-called \u201ccryptocurrency winter\u201d phase the market is facing. Analysts from Goldman Sachs downgraded<\/a> $COIN to a sell rating in June when the stock was priced 83.78% below its all-time high value of $342.98. At the time, analysts stated the company had to make \u201csubstantial reductions in its cost base.\u201d<\/p>\n

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What do you think about the probe the SEC is reportedly conducting against Coinbase regarding the listing of unregistered securities? Tell us in the comments section below.<\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, alfernec, Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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