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: SEC reportedly investigating Coinbase over crypto trading

The Securities and Exchange Commission is reportedly investigating Coinbase Global Inc. over whether it has allowed the trading of unregistered securities.

Bloomberg News reported late Monday that regulatory scrutiny has increased since Coinbase expanded the amount of digital tokens it includes for trading. The report said the investigation predates another probe into alleged insider trading, when a former Coinbase manager was charged the other day.

Exactly the same basic issue is apparently at the main of both cases: The SEC claims some cryptocurrencies provided by Coinbase are securities, as the company says they’re not. The other day, the SEC claimed nine digital assets traded by by Coinbase are in fact securities.

Coinbase will not list securities. End of story,Coinbase Chief Legal Officer Paul Grewal said in a statement the other day.

Grewal reiterated that Monday night. We have been confident our rigorous diligence process an activity the SEC has recently reviewed keeps securities off our platform, and we anticipate engaging with the SEC on the problem, he said in a statement.

Coinbase allows trading for a lot more than 150 digital tokens, many much less well known compared to the likes of bitcoin BTCUSD, -4.96% and ethereum ETHUSD, -7.13%. In accordance with Bloomberg, if those tokens were to be declared securities, Coinbase would need to register with the SEC being an exchange.

Coinbase shares COIN, -5.30% are down about 73% year up to now because the wider crypto market has crashed, when compared to S&P 500s SPX, +0.13% 17% decline in 2022.

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