Updated · Aug 15, 2022
SEC Investigates Coinbase Over Securities Listings
Updated · Jul 26, 2022
Seven tokens listed on Coinbase are securities, says the SEC.
Probe Over Token Listings
Coinbase is facing a probe by the Securities and Exchange Commission (SEC). The commission is looking to discover whether it allowed United States citizens to trade cryptocurrency that should have been registered as securities. Bloomberg cited people with knowledge on the matter.
According to the anonymous sources, the SEC put the cryptocurrency exchange in its crosshairs since it expanded the number of tokens it offers for trading.
The commission said last week that seven of the coins listed on the exchange are securities. Gary Gensler, the SEC’s Chair, has made it clear he believes Coinbase should register as a national securities exchange.
The listing allegation stems from an unrelated matter over insider trading involving a former product manager at the company.
Coinbase has denied listing securities on its platform. Legal head Paul Grewal said the company will work with the SEC toward finding a resolution.
“We are confident that our rigorous diligence process - a process that SEC has already reviewed - keeps securities off our platform,” he said.
No Workable Regulatory Framework
Coinbase issued a scathing attack on the commission’s processes last week, following scrutiny over the insider trading case.
“The SEC’s charges put a spotlight on an important problem: the US doesn’t have a clear or workable regulatory framework for digital asset securities,” it said in a statement.
“And instead of crafting tailored rules in an inclusive and transparent way, the SEC is relying on these types of one-off enforcement actions to try and bring all digital assets into its jurisdiction, even those assets that are not securities.”
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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