Following Coinbase’s decision to expand the range of cryptocurrencies it supports, the SEC is conducting an investigation into the company.
Just days after indicting two former product managers for insider trading, the Securities and Exchange Commission (SEC) launched an investigation into whether cryptocurrencies listed on Coinbase are securities.
- According to Bloomberg, this most recent investigation predates the SEC’s ongoing insider trading investigation.
- Paul Grewal, Chief Legal Officer of Coinbase, stated that the company is willing to collaborate with law enforcement agencies.
“The Securities Market Commission (SEC) has validated that our rigorous review procedure prevents securities from appearing on our platform.”
- In the last few months, Coinbase has supported more than 150 different tokens. Should the SEC decide to treat these tokens as securities, the exchange will need to register.
- On July 21, Ishan Wahi, his brother, and a third individual were arrested on charges of engaging in insider trading in the cryptocurrency sector.
- Coinbase was embroiled in a dispute with the Securities and Exchange Commission (SEC) over the classification of ENS, GALA, POWR, and ALCX as securities. Both the Justice Department and the Commodity Futures Trading Commission disagree with what the SEC said.
- CFTC Commissioner Caroline D. Pham stated that the decision to investigate nine tokens as securities could have repercussions for future legal fights as well as for consumers.
- Coinbase has filed an application with the SEC for the establishment of a digital asset securities framework.